Woody Co. is an experienced pellet stove dealer that also offers a number of services for the stoves that it sells.

Assume that Woody's sells pellet stoves on a standalone basis and that it also sells installation and maintenance service for stoves. However, Woody's does not offer installation or maintenance services to customers who buy stoves from other vendors. Pricing of the pellet stoves is as follows:

Stove only 1,200

Stove with installation service 1,275

Stove with maintenance service 1,465

Stove with installation and maintenance services 1,500

In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $265. Additionally, the incremental amount charged by Woody's for installation approximates the amount charged by independent third parties.

a The customer purchases a pellet stove with both installation and maintenance services for $1,500. Based on its experience,Woody's believes that the installation will be performed satisfatorily. Assume that the maintenance services are priced separately, (the three components are distinct). Identify the separate performance obligations related to this situation.

b Indicate the amount of revenue that should be allocated to each performance obligation.