Bike Zone, a bicycle retailer, offers a discounted accessory bundle when customers purchase a bike. The accessory
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Question:
Bike Zone, a bicycle retailer, offers a discounted accessory bundle when customers purchase a bike. The accessory bundle includes a water bottle holder, bike lock, and front light. The stand-alone prices for these accessories are $15, $20, and $30, respectively. Bike Zone estimates that 60% of bike buyers take advantage of this accessory bundle offer. If Bike Zone sells 500 bikes with the accessory bundle offer, what is the total stand-alone selling price that Bike Zone would use for the accessory bundle to allocate revenue among the performance obligations in those 500 bike contracts?
$0
$8,000
$15,000
$19,500
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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