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Discounted Transaction Price
Gabby Inc Instructions
How Should the Discount Be Allocated to the Elements

Question 89

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Discounted transaction price
Gabby Inc., is selling tickets to a conference. In addition, Gabby offers an online course. Online courses are often sold separately at a rate of $ 259 per course.
 Item  Stand-alone Selling Price  Price when Bundled  Conference $60 Course $249 Both $185 Total $309$185\begin{array} { l l c } \underline{\text { Item } }& \underline{\text { Stand-alone Selling Price }} &\underline{ \text { Price when Bundled }} \\ \text { Conference } & \$ 60 & \\\text { Course } & \underline { \$ 249 } & \\\text { Both } && \$ 185 \\\text { Total } &\$309& \$ 185\end{array} Instructions
How should the discount be allocated to the elements of the revenue arrangement?

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