Optimus Pools, Inc. constructs outdoor swimming pools for wealthy individuals. Recently it obtained an order to build a three-lane swimming pool of 25 yards in length in the customer's backyard. Under the contract, Optimus is also obligated to install a water heater and a filtration system, which are necessary to make a swimming pool fully functional. Total price for the construction was $55,000. Each of these smaller components would typically cost $40,000, $10,000, and 20,000 if installed separately.
Required:
Given the information above, how many performance obligations are included in this contract?

Question

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The Answer of Optimus Pools, Inc. constructs outdoor swimming pools for wealthy individuals. Recently it obtained an order to build a three-lane swimming pool of 25 yards in length in the customer's backyard. Under the contract, Optimus is also obligated to install a water heater and a filtration system, which are necessary to make a swimming pool fully functional. Total price for the construction was $55,000. Each of these smaller components would typically cost $40,000, $10,000, and 20,000 if installed separately.
Required:
Given the information above, how many performance obligations are included in this contract?