[Solved] Hans Cars & Trucks Sells Various Types of Used Vehicles

Question 320
Essay

Hans Cars & Trucks sells various types of used vehicles with a one-year warranty that covers any defects.When customers make a purchase,they also receive a coupon for 10 free engine oil changes and an option to change all of the tires for $50 after 30,000 miles.Typically,customers pay $25 for an oil change and $250 for a new set of tires.
Required:
(a)Given the information above,how many performance obligations exist in the contract to purchase a vehicle?
(b)Assume the same contract but that it offers customers an option to change all of the tires for $250 after 30,000 miles.How many performance obligations exist in the contract to purchase a vehicle?

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