Costanzo Auto Shop
Costanzo Auto Shop Signs a Contract to Provide

Costanzo Auto Shop
Costanzo Auto Shop signs a contract to provide three different products to a customer for a total transaction price of $975,000. Each product represents a separate performance obligation. Costanzo only sells two of the three products on an individual basis so they must estimate the standalone selling price for the third product. The information about these three products is provided in the following table.
$\begin{array}{cccc}&&\text { Market }\\&\text { Standalone }&\text {Competition }&\text {Forecasted }\\\underline{\text { Product} } &\underline{ \text { Selling Price }} & \underline{\text { Price }} & \underline{\text { Cost }} \\\text { Zoom-1 } & \$ 262,500 & \$ 199,500 & \$ 180,000 \\\text { Zoom-2 } & 450,000 & 468,000 & 375,000 \\ \text { Zoom-3 } & \text { Not Available } & \underline{300,000} & \underline{195,000} \\\quad \text { Total } &&7950,000 & \$ 67,500 &\end{array}$

-Refer to Costanzo Auto Shop. Allocate the transaction price using the residual approach.