Question: Orange Inc sells a LearnIt Plus software package that consist
Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math tutorial program along with a one-year subscription to the on-line LearnIt Office Hours virtual classroom. LearnIt-Plus retails for $200. When sold separately, the LearnIt math tutorial sells for $150, and access to the LearnIt Office Hours sells for $100 per year. When should Orange recognize revenue for the parts of this arrangement? Would your answer change if Orange did not sell the LearnIt Office Hours separately, but believed it would price it at $100 per year if they ever decided to do so?
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