[Solved] Lexikon Pianos Sells Customized Concert Pianos Throughout the U

Question 321
Essay

Lexikon Pianos sells customized concert pianos throughout the U.S.Its grand concert piano sells for $200,000,which includes delivery and installation.The product comes with a two-year warranty that covers any product defects,and customers can choose to add an extended three-year warranty for maintenance and repair at a price of $2,000.Customers also get an option to upgrade traditional plastic keys to bone ones for an additional $20,000.The extended warranty would normally sell for $3,500,and the installation of bone keys carries a standalone price of $30,000.
Required:
(a)Given the information above,how many performance obligations exist in the contract to purchase a grand concert piano?
(b)Now,assume that the standalone price of the extended warranty is $2,000,and that of the bone key upgrade is $20,000.How many performance obligations exist in the contract to purchase a grand concert piano?

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