Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includesthe following:∙ One Protab computer.∙ A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due torepairs or replacements associated with defective products for up to six months.∙ A coupon to purchase a Creative Probook e-book reader for $200, a price that represents a 50% discount fromthe regular Probook price of $400. It is expected that 20% of the discount coupons will be utilized.∙ A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for$50 at other times as well. Creative estimates that 40% of customers will purchase an extended warranty.∙ Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the optionto purchase an extended warranty, but estimates that if it did so, a Protab alone would sell for $760.Required:1. How many performance obligations are included in a Protab Package? Explain your answer
Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes
the following:
∙ One Protab computer.
∙ A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to
repairs or replacements associated with defective products for up to six months.
∙ A coupon to purchase a Creative Probook e-book reader for $200, a price that represents a 50% discount from
the regular Probook price of $400. It is expected that 20% of the discount coupons will be utilized.
∙ A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for
$50 at other times as well. Creative estimates that 40% of customers will purchase an extended warranty.
∙ Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option
to purchase an extended warranty, but estimates that if it did so, a Protab alone would sell for $760.
Required:
1. How many performance obligations are included in a Protab Package? Explain your answer
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