Calculate the transaction price for this contract

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Question - Allocation of Transaction Price

A hotel advertised a package deal for $210 per night. The package includes a hotel room and breakfast for two. The hotel room is normally sold separately for $160 and each breakfast costs $40 if purchased at the hotel. Mr and Mrs Tourist booked this package for 1 night.

Required -

a. Calculate the transaction price for this contract.

b. Allocate the transaction price to the performance obligation(s).

Reference no: EM132935175

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