Mathematics · Financial Accounting
Domgas Co sells new gas boilers for $1,400 each. This month's special offer is a three-year service contract with every new gas boiler installation for a total bundle price of $1,500. The stand-alone selling price for an annual service is $100 (implying $300 for a three-year service contract). What amount of the transaction price should be allocated to the service contract (to the nearest $)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$100
- 2$235
- 3$300
- 4$265✓
Correct answer
$265
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