v Orange Inc. offers a discount on an...
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Orange Inc. offers a discount on an extended warranty on its oPhone when the warranty is purchased at the time the ophone is purchased. The warranty normally has a price of $168, but Orange offers it for $129 when purchased along with an ophone. Orange anticipates a 75% chance that a customer will purchase the extended warranty along with the ophone. Assume Orange sells to 1,000 oPhones with the extended warranty discount offer. What is the total stand-alone selling price that Orange would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1,000 oPhone contracts? Multiple Choice $129,000 $0 $39,000 $29,250
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