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Orange inc sells a learnit-plus software package that

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Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math tutorial program along with a one-year subscription to the online LearnIt Office Hours virtual classroom. LearnIt-Plus retails for $400. When sold separately, the LearnIt math tutorial sells for $435, and access to the LearnIt Office Hours sells for $290 per year.

  1. How much revenue will be recognized upon delivery of the LearnIt software?
  2. How much revenue will be deferred and recognized over the life of the one-year period in which the Office Hours are delivered?
  3. If Orange did not sell the LearnIt Office Hours separately, but believed it would price it at $290 per year.
  4. How much revenue will be recognized upon delivery of the LearnIt software?
  5. How much revenue will be deferred and recognized over the life of the one-year period in which the Office Hours are delivered?

Reference no: EM13617639

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