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Wilson Links Products sells a product that involves two separate performance obligations: the SwingRight golf club weight and the SwingCoach teaching software. SwingRight has a stand-alone selling price of $150. Wilson sells both the SwingRight and the SwingCoach as a package deal for $200. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $100 for similar software, and Wilson's prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $65 of cost per copy of the software, and usually charges 50% above cost on similar products.
-Estimate the stand-alone selling price of the software using the adjusted market assessment approach.
Recognizance
A legal obligation, acknowledged before a court, where an individual promises to adhere to certain conditions without the need for posting bail.
Acknowledges
The act of recognizing or admitting the existence or truth of something, often formally in writing.
Specified Act
An action precisely described or defined within a legal document or law.
Executory
Describes a contract or lease that has not yet been fully performed or completed by all parties involved.
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