A yacht dealer sells high performance yachts to affluent customers. The sale also includes a 90-day warranty against any defects in workmanship. The number of performance obligations for each yacht is ________.
A) 1
B) 2
C) 3
D) 4

Question

Quizplus · Accepted Answer

The sale of the yacht is one performance obligation, and the 90-day warranty is a separate performance obligation.

A Yacht Dealer Sells High Performance Yachts to Affluent Customers