Estimate the stand-alone selling price of the software

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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 $230. Wilson sells both the SwingRight and the SwingCoach as a package deal for $360. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $260 for similar software, and Wilson's prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $145 of cost per copy of the software, and usually charges 50% above cost on similar products.

Question 1: Estimate the stand-alone selling price of the software using the residual approach.

Multiple Choice

Option 1: $130

Option 2: $240

Option 3: $290

Option 4: $218.0

Reference no: EM132574687

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