connect.htm Ch. 5 On July 15, 2018, Ortiz & Co. signed a contract to provide Eve

Question

connect.htm Ch. 5 On July 15, 2018, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $90,000 The system included finely tuned scales that fit into EverFresh's automated assembly line, Ortiz's weighing system to function in EverFresh's automated system, and a one-year contract to calibrate the needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz's systems.) If Ortiz was to provide these goods or services separately, it would charge $60,000 for the scales, $10,000 for the software, and $30,000 for the calibration contract proprietary software modified to allow the 8 025a2 Ortiz delivered and installed the equipment and software on August 1, 2018, and the calibration servic and software on an as- How many performance obligations exist in this contract? mmenced on that date 0 Prex 1 of Next

Explanation / Answer

There are 2 performance onligations in the contract, Combination of scales and software; and the calibration contract

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