Business, 07.03.2020 02:51 lexi7149

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 $136, but Orange offers it for $113 when purchased along with an oPhone. Orange anticipates a 70% 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?

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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 is $16,100

Explanation:

Provided data from the question;

normal price = $136

discounted price when purchased along with an oPhone = $113

chance that a customer will purchase the extended warranty along with the oPhone = 70 percent

Assumed number of oPhones sold with the extended warranty discount offer = 1000

To determine the total stand-alone selling price;

= (normal price - discounted price) × percentage chance × assumed amount

= ($136 - $113) × 0.7 × 1000

= $23 × 0.7 × 1000

= $16,100

Answer from: probro1167

$16,100

Explanation:

Total stand-alone selling price to be used for the extended warranty discount option can be calculated as the difference between the warranty normal price of $136 and $113 that is offered for sale when purchased along with an oPhone multiply by the 70% chance that a customer will purchase the extended warranty along with the oPhone and 1,000 oPhones with the extended warranty discount offer. This is given as follows:

Total stand-alone selling price = ($136 - $113) × 70% × 1,000

= 23 × 700

Total stand-alone selling price = $16,100.

Therefore, he 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 is $16,100.

Answer from: Quest

Destablishing a distribution network

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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