TS Electric Is A Natural Gas Generator Dealer And Also Offers A Number Of Services For The
Question:
TS Electric Is A Natural Gas Generator Dealer And Also Offers A Number Of Services For The Natural Gas Generator It Sells. TS Electric Will Sell Natural Gas Generators On A Standalone Basis, With Installation, Or With Install And Maintenance Service. Appliance Center Also Sells Installation Services And Maintenance Services For Ovens. However, Natural Gas
This question hasn't been solved yet
Ask an expert
TS Electric is a natural gas generator dealer and also offers a number of services for the natural gas generator it sells. TS Electric will sell natural gas generators on a standalone basis, with installation, or with install and maintenance service. Appliance Center also sells installation services and maintenance services for ovens. However, natural gas generator does not offer installation or maintenance services to customers who buy natural gas generators from other vendors. Pricing for natural gas generators is as follows.
$
Standalone
With installation service
With maintenance services
With installation and maintenance services
7,500
8.250
9,500
10,000
In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $2.000. Additionally, the incremental amount charged by TS Electric for installation is like the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $7,500.
Assume that a customer purchases a natural gas generator with both installation and maintenance services for $10,000.
Based on its experience, TS Electric believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct). Identify the separate performance obligations and amounts related to TS Electric's revenue arrangement.
-Natural gas generator
-Maintenance
-Installation
