Winchell wrote a contract that involves two performance obligations. Product A has a stand-alone selling price of $50, and product B has a stand-alone selling price of $100. The price for the combined product is $120. How much of the transaction price would be allocated to the performance obligation for delivering product A

the transaction price allocated to product B is $40

Explanation:

The computation of the transaction price allocated to product B is shown below:

= Price of the combined product × price of product A ÷ (price of product A + price of product B)

= $120 × $50 ÷ ($50 + $100)

= $120 × $50 ÷ $150

= $40

Hence, the transaction price allocated to product B is $40

We simply applied the above formula so that the correct value could come

And, the same is to be considered

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.