A company enters into a contract to supply three distinct products to a customer. The supply of each of these products is regarded as a separate performance obligation. The stand-alone prices of the three products (if sold separately) are:

• Product A: R18750
• Product B: R36000
• Product C: R41250

The agreed contract price is R86400. How should this price be allocated to the performance obligations?

All the prices above exclude VAT.

(3 Marks)

Answer:

Product A: R

Product B: R

Product C: R

Note: Enter only the amount (do not show your calculation, and do not make use of spaces, full-stops, commas or R-signs). Example: 74000