Business, 24.04.2020 00:12 sherifour

Sheridan Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.

1. Sheridan Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $483. The standalone selling price of the tablet is $263 (the cost to Sheridan Company is $166). Sheridan Company sells the Internet access service independently for an upfront payment of $274. On January 2, 2020, Sheridan Company signed 90 contracts, receiving a total of $43,470 in cash.
2. Sheridan Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $589. Sheridan Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $139. Sheridan Company signed 180 contracts for Sheridan Bundle B on July 1, 2020, receiving a total of $106,020 in cash.

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