The Following Information Applies to the Questions Displayed Below

question 197

Multiple Choice

The following information applies to the questions displayed below.

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 expected cost plus margin approach.

• A) $50
• B) $80
• C) $90
• D) $97.50

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Definitions:

Patterns of Activity

Recurring behaviors or actions undertaken by individuals or groups in specific contexts.

Power Bases

The sources of influence and authority an individual or organization possesses.

Self-interested Politics

Actions within an organization where individuals or groups prioritize their own interests over the collective good.

Ambiguous Outcomes

Results or effects of actions that are not clearly defined or can be interpreted in multiple ways.