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Help Save& Exit Sub 6 Orange Inc offers a discount on an extended warranty on it

ID: 2552595 • Letter: H

Question


Help Save& Exit Sub 6 Orange Inc offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the oPhone is purchased chance that a customer will purchase the extended warranty along with the oPhone. As purposes of allocating revenue among the performance obligations in those t000 oPhone contracts? has a price of St30, but drange offers it for Smo when purchased along with an ophone Orange anticipates a 70% t sume Orange sells to 1,000 oPhones with the extended What is the total stand-alone selling price that Orange would use for the extended warranty discount option for Multiple Choice $110,000 so K Prev 3of Nextè 8 6 8 9 0

Explanation / Answer

D. $14,000

The $20 discount has a 70% chance of being taken by a customer, so the stand-alone selling price associated with1,000 oPhones is $14,000 (computed as $20 × 70% × 1,000 phones).