The Following Information Applies to the Questions Displayed Below

question 145

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 adjusted market assessment approach.

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

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Definitions:

Direction

Guidance or supervision towards a destination or in a particular course of action; also, the path that must be taken to reach a place.

Statistically Significant

A term indicating that the results of an analysis demonstrate a likelihood that the observed effects or differences are not due to chance.

Sampling Variation

The variability in statistical measurements that occurs when different samples are taken from the same population.

Difference

Implies a point or way in which people or things are not the same.