Verma, Inc. sells office furniture. In 2021, it sold 200 desks for $500 each. For each desk sold, Verma distributed a 50% discount coupon for purchase of an office chair within one month. Based on historical experience, Verma expects that approximately 20% of the coupons will be utilized. The chairs purchased with the coupons are priced at $150 and normally discounted 10%. 

What would be the stand-alone sales price used by Verma for the coupon when allocating the $500 transaction price to performance obligations?

Answer rating: 100% (QA)

The standalone price is the price at which the seller Verma would sell ... View the full answer