Question: creative Computing sells a tablet computer called the Protab. The $605 sales price of a Protab Package includes the following: One Protab computer. repairs or
creative Computing sells a tablet computer called the Protab. The $605 sales price of a Protab Package includes the following: One Protab computer. repairs or replacements associated with defective products for up to six months. A coupon to purchase a Creative Probook e-book reader for $325, a price that represents a 50% discount from the regular Probook price of $650. It is expected that 20% of the discount coupons will be utilized A coupon to purchase a one-year extended warranty for $55. Customers can buy the extended warranty for $55 at other times as well. Creative estimates that 30% of customers will purchase 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 so, a Protab alone would sell for $585. Required: 1.8 2. below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Packages to the separate performance obligations in the contract. Performance obligation? Stand Alone Price Item Description Percentage of Total Stand Alone Price Protab computers Limited 6-month warranty Probook discount vouchers option to purchase extended warranty Total stand alone price Percentage of Item Description Total Stand x Total Transaction Allocated Contract Alone Price Protab computers Limited 6-month warranty Probook discount vouchers Option to purchase extended warranty Total contract price
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