What are Destin Company's performance obligations in the contract to manufacture a new 3D printer?
What are the key elements of the contract signed by Destin Company to manufacture a new 3D printer for $80,000, including installation and maintenance agreement costs?
Key Elements of the Contract:
2. Installation Cost: The installation cost is $4,000.
3. Maintenance Agreement Cost: The maintenance agreement over the life of the printer is $10,000.
Destin Company's Performance Obligations:
1. Delivery of the 3D Printer: Destin Company must manufacture and deliver the 3D printer as per the contract terms.2. Installation Services: Destin Company is obligated to provide installation services to ensure the 3D printer is operational.
3. Maintenance Agreement: Destin Company must fulfill the maintenance agreement over the lifespan of the printer to ensure its proper functioning.
4. Customer Support: Destin Company may also have a performance obligation to provide customer support and assistance in case of any issues with the 3D printer.
5. Warranty Services: If there is a warranty included in the contract, Destin Company must honor the warranty obligations to the customer.