Tesla Inc. designs, manufactures and sells electric vehicles, stationary battery energy storage devices, and related products and services. It is currently offering a promotion in conjunction with the sale of 2024 Model Y: customers can purchase a Model Y for $48,000, which is the normal retail price for this item, and get one year of free maintainance service. The same maintenance service can be purchased from a third party for $2,000. For each Model Y sold, how should Tesla allocate the transaction price?

Answer rating: 100% (QA)

There are two common approaches Tesla could use to allocate the transaction price of the Model Y wit... View the full answer