Surfside Ltd is marketing a ‘surfing bundle’ in which, for $1100, it provides customers with a surfboard (which retails separately for $850), a wetsuit (which retails separately for $250) and five lessons (which retail separately for $200). You are required to determine:

a. Whether separate performance obligations exist, and to explain why you made this judgment.

b. How much of the transaction price to allocate to each performance obligation