Business, 14.11.2019 05:31 culbertchristi4887

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

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Hooper inc. offers a discount on an extended warranty on its eyephone when the warranty is purchased...