The Rink Offers Annual $200 Memberships That Entitle Members to Unlimited

question 210

Essay

The Rink offers annual $200 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "20% off a $5 meal" coupons that are redeemable at the Rink's snack bar. The Rink estimates that approximately 80% of the coupons will be redeemed, and that, if the coupons weren't redeemed, $5 meals still would be discounted by 5% because of ongoing promotions.
-Calculate how much of the transaction price should be allocated to each performance obligation in the contract. Show your work.

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Definitions:

Negotiation

A dialogue between two or more parties aimed at reaching a consensus or resolving differences.

Multilateral Bargaining

A negotiation process involving more than two parties, often seen in large industrial negotiations or international trade discussions.

Government Officials

Individuals who hold positions of authority in governmental organizations and are responsible for enacting and enforcing laws and regulations.

Attitudinal Structuring

Efforts made in negotiations or in the workplace to shape or influence attitudes, behaviors, and perceptions among employees or negotiation parties.