Estimate the stand-alone selling price

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Question - Wilson Links Products sells a product that involves two separate performance obligations: the SwingRight golf club weight and the SwingCoach teaching software. SwingRight has a stand-alone selling price of $155. Wilson sells both the SwingRight and the SwingCoach as a package deal for $210. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $110 for similar software, and Wilson's prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $70 of cost per copy of the software, and usually charges 50% above cost on similar products.

Required - Estimate the stand-alone selling price of the software using the expected cost plus margin approach.

a. $99.00

b. $55.00

c. $79.00

d. $105.00

Reference no: EM132590899

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