Question
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 from the purchase. The golf clubs have a separate sale price of $ 150. Wilson sells the golf clubs and teaching software as a bundle (combo) for $ 200. teaching software does not sell separately Wilson knows that other vendors charge $ 100 for a similar schedule, and Wilson's prices are generally 10% lower than what those providers charge Wilson estimates that it incurs approximately $ 65 in costs for each copy of the schedule , and usually charges 50% above cost on similar products. Using the adjusted market price approach, calculate the price to be allocated of the total $ 200 for the sale of the golf clubs alone.
a. $ 75
b.$ 125
c. $110
d $ 120
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