Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wilson sells a product that involves two separate performance obligations: a set of 3 golf clubs and a computer program that teaches the basic techniques
Wilson sells a product that involves two separate performance obligations: a set of 3 golf clubs and a computer program that teaches the basic techniques of the sport of golf. The customer gains access to the computer program through the internet with the code received on the day of purchase. Golf clubs have a separate selling price of $ 150. Wilson sells the golf clubs and teaching software as a bundle (combo) for $ 200. The teaching software is not sold separately. Wilson knows that other providers charge $ 100 for similar programming, and Wilson's prices are generally 10% lower than what those providers charge. Wilson estimates that he incurs approximately $ 65 in costs for each copy of the schedule, and typically charges 50% above the cost for similar products. Using the adjusted market price approach, calculate the price to be allocated of the total $ 200 for the sale of the instructional program. a. $ 90 b. $ 75 c. $ 50 d. $ 100
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started