Pet Lodge Inc., which offers day and overnight kennel services for pets, is offering a promotion...
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Pet Lodge Inc., which offers day and overnight kennel services for pets, is offering a promotion for new customers signing a contract: purchase 3 overnight stays, a 10-visit day pass punch card, and a new leash for $260. The total transaction price of $260 is stated to the customer as $90 for the overnight stay, $150 for the punch card, and $20 for the leash. Allocate the $260 transaction price under the following separate scenarios. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Two of the three items (overnight stays and day pass punch card) are sold separately by Pet Lodge Inc. The standalone selling prices of the overnight stays and day pass punch card are $90 and $150, respectively. Pet Lodge Inc. purchased the leashes for $15 each and expects a gross profit margin of 50%. Standalone Transaction Price as Stated Allocated Transaction Price Selling Price (rounded) Performance Obligations Overnight stay $ 10-visit pass Leash $ 90 150 20 260 $ Correct $ 90 150 30 x 270 x $ $ 87 144 X 29 * 260 Pet Lodge Inc., which offers day and overnight kennel services for pets, is offering a promotion for new customers signing a contract: purchase 3 overnight stays, a 10-visit day pass punch card, and a new leash for $260. The total transaction price of $260 is stated to the customer as $90 for the overnight stay, $150 for the punch card, and $20 for the leash. Allocate the $260 transaction price under the following separate scenarios. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Two of the three items (overnight stays and day pass punch card) are sold separately by Pet Lodge Inc. The standalone selling prices of the overnight stays and day pass punch card are $90 and $150, respectively. Pet Lodge Inc. purchased the leashes for $15 each and expects a gross profit margin of 50%. Standalone Transaction Price as Stated Allocated Transaction Price Selling Price (rounded) Performance Obligations Overnight stay $ 10-visit pass Leash $ 90 150 20 260 $ Correct $ 90 150 30 x 270 x $ $ 87 144 X 29 * 260
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