Hooper Inc. offers a discount on an extended warranty on its eyePhone when the warranty is purchased at the time the eyePhone is purchased. The warranty normally has a price of $300, but Hooper offers it for $240 when purchased along with an eyePhone. Hooper anticipates a 75% chance that a customer will purchase the extended warranty along with the eyePhone. Assume Hooper sells 1,000 eyePhones with the extended warranty discount offer. What is the total stand-alone selling price that Hooper would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1,000 eyePhone contracts?
A. $240,000
B. $60,000
C. $45,000
D. $0
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Hooper Inc. offers a discount on an extended warranty on its eyePhone when the warranty is purchased at the time the eyePhone is purchased. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is the future value of $490 per year for 9 years compounded annually at 11 percent? The future value of $490 per year for 9 years compounded annually at 11 percent is $ nothing. (Round to the nearest cent
Answers (1)
Dennis, the owner of a popular restaurant, is a religious man, and he needs to make a decision on whether he will add beer and wine to his menu, based on the recommendations of his chefs and others.
Answers (1)
Jane is a roofing contractor. Jane's friend needed a new roof but did not have the cash to pay. Jane's friend instead paid with a used truck that Jane could use in her roofing business.
Answers (1)
Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade. Its currency is the arc. Potential output is 600 billion arcs.
Answers (1)
You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows.
Answers (1)
New Questions in Business
Which of the following could result in the termination and liquidation of a partnership?1) Partners are incompatible and choose to cease operations. 2) There are excessive losses that are expected to continue. 3) Retirement of a partner. A. 1 onlyB.
Answers (1)
If an employer agrees to give you constructive criticism of your interview performance, you need to listen carefully and take notes. true or false
Answers (1)
If Whole Foods Market leaders were to engage in a SWOT analysis, they might study which of the following factors as part of the organization's external environment? a. Demographic and population changes within society b. The organizational culture c.
Answers (1)
How many fewer shirts are sold at the new demand level for any given price?
Answers (1)
brazil could produce coffee and rice. however, because of the climate and land of brazil, coffee is much cheaper and faster to produce.
Answers (2)