Yohoho Products enters into a contract with a customer that involves two separate performance obligations: providing the customer with the YogaRight weight and the YogaCoach teaching software. YogaRight has a stand-alone selling price of $250. Yohoho sells both the YogaRight and the YogaCoach as a package deal for $300. The YogaCoach software does not have a standalone selling price. Yohoho is aware that other vendors charge $100 for similar software, and Yohoho's prices are generally 10% lower than what is charged by those vendors. Yohoho estimates that it incurs approximately $65 of cost per copy of the software, and usually charges 50% above cost on similar products. Using the residual approach, what would be the estimated stand-alone selling price of the YogaCoach software? A. $50 B $80 C $90 D S8
Yohoho Products enters into a contract with a customer that involves two separate performance obligations: providing the customer with the YogaRight weight and the YogaCoach teaching software. YogaRight has a stand-alone selling price of $250. Yohoho sells both the YogaRight and the YogaCoach as a package deal for $300. The YogaCoach software does not have a standalone selling price. Yohoho is aware that other vendors charge $100 for similar software, and Yohoho's prices are generally 10% lower than what is charged by those vendors. Yohoho estimates that it incurs approximately $65 of cost per copy of the software, and usually charges 50% above cost on similar products. Using the residual approach, what would be the estimated stand-alone selling price of the YogaCoach software? A. $50 B $80 C $90 D S8
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Yohoho Products enters into a contract with a customer that involves two separate performance obligations:
providing the customer with the YogaRight weight and the YogaCoach teaching software. YogaRight has a
stand-alone selling price of $250. Yohoho sells both the YogaRight and the YogaCoach as a package deal for
$300. The YogaCoach software does not have a standalone selling price. Yohoho is aware that other vendors
charge $100 for similar software, and Yohoho's prices are generally 10% lower than what is charged by those
vendors. Yohoho estimates that it incurs approximately $65 of cost per copy of the software, and usually
charges 50% above cost on similar products. Using the residual approach, what would be the estimated
stand-alone selling price of the YogaCoach software?
A. $50
B $80
C $90
D $8
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