The Following Information Applies to the Questions Displayed Below

question 177

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 residual approach.

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

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Definitions:

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