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Leviafan [203]
2 years ago
7

Wilson Links Products sells a product that involves two separate performance obligations: the SwingRight golf club weight and th

e SwingCoach teaching software. SwingRight has a stand-alone selling price of $150. Wilson sells both the SwingRight and the SwingCoach as a package deal for $200. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $100 for similar software, and Wilson's prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $65 of cost per copy of the software, and usually charges 50% above cost on similar products.
Estimate the stand-alone selling price of the software using the expected cost plus margin approach.

a. $97.50
b. $80
c. $90
d. $50
Business
1 answer:
4vir4ik [10]2 years ago
7 0

Answer:

Stand alone selling price of the software using expected cost plus margin approach  =   $65  +  ( 50% * 65)  

                =   $65  +  $32.5  =    $97.5

Explanation:

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