Orange Inc

question 282

Multiple Choice

Orange Inc. offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the oPhone is purchased. The warranty normally has a price of $150, but Orange offers it for $120 when purchased along with an oPhone. Orange anticipates a 75% chance that a customer will purchase the extended warranty along with the oPhone. Assume Orange sells to 1,000 oPhones with the extended warranty discount offer. What is the total stand-alone selling price that Orange would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1,000 oPhone contracts?

• A) $0
• B) $22,500
• C) $30,000
• D) $120,000

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Definitions:

Functions of Dreams

Theories proposing various physiological, cognitive, or psychological purposes of dreaming.

Circadian Rhythms

Circadian Rhythms are natural, internal processes that regulate the sleep-wake cycle and repeat roughly every 24 hours, affecting various physiological processes in organisms.

Biological Clock

An internal mechanism in organisms that controls the cycle of various physiological functions, such as sleep and wakefulness.

Functioning

The action or purpose for which a person or thing is suited or employed, especially with regard to normal or healthy operation.