Brief Exercise $6-9($Static$)$ Performance obligations; warranties $[$LO$6-5]$

Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one$-$year warranty that covers any product defects. When

customers purchase a Tornado, they also have the option to purchase an extended three$-$year warranty that covers any breakage or

maintenance. Customers pay $20\%$ less for the extended warranty if they buy it at the same time they buy a Tornado.

How many performance obligations exist in the implied contract for the purchase of a vacuum cleaner?

Number of performance obligations in the contract