Question: Creative Computing sells a tablet computer called the Protab. The $875 sales price of a Protab Package includes the following: One Protab computer. A 6-month
| Creative Computing sells a tablet computer called the Protab. The $875 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 $225, a price that represents a 50% discount from the regular Probook price of $450. It is expected that 20% of the discount coupons will be utilized. | |
| A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $40 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 $855. | |
| Required: | |
| 1. & 2. | Indicated below whether each item is a separate performance obligation and allocate the transaction price of 100,000 Protab Packages to the separate performance obligations in the contract. |
| Want to know how to calculate the stand alone price for these variables Protab computers Limited 6 month waranty Probook discount vouchers Option to purchase a Probook | |
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