Orange inc offers a discount on an extended warranty on its


Orange Inc. offers a discount on an extended warranty on its iPhone when the warranty is purchased at the time the iPhone is purchased. The warranty normally has a price of $150, but Orange offers it for $120 when purchased along with an iPhone. Orange anticipates a 75% chance that a customer will purchase the extended warranty along with the iPhone. Assume Orange sells to 1,000 iPhones 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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Financial Accounting: Orange inc offers a discount on an extended warranty on its
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