Sofaline has undertaken to deliver 500 units office chairs at EUR 80 each; each chair is a distinct good whose control is transferred on delivery. After 200 units chairs have been delivered, the parties approve the addition of 100 units chairs at a unit price of EUR 60, whereas the stand-alone selling price of a chair is EUR 80 at that date; the reduction is a commercial gesture unrelated to that price. Compute the unit price at which Sofaline recognises revenue for each chair remaining to be delivered after the modification.
- Number of chairs in the original contract
- 500
- Unit price in the original contract
- 80
- Chairs delivered before the modification
- 200
- Chairs added by the modification
- 100
- Unit price of the added chairs
- 60
- Stand-alone selling price of a chair at the modification date
- 80