Creative Computing, Inc. sells a tablet called the Protab. The $780 sales price of a Protab package includes the following;

One Protab computer

A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months.

A coupon to purchase a Creative Probook e-book reader for $200, a price that represents a 50% discount from the regular Probook price of $400. It is expected that 20% of the discount coupons will be utilized.

A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for $50 at other times as well. Creative estimates that 40% of customers will purhcase an extended warranty.

Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but estimates that if it did, a Protab alone would sell for $760.

REQUIRED: (a) How many performance obligations are included in a Protab package? Explain your answer.

(b) Allocate the transaction price for the sale of 100,000 Protab Packages to the performance obligations in the contract.