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Potential Deliverables in the Arrangement: Homo-Tech Inc - Case Study Example

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The paper “Potential Deliverables in the Arrangement: Homo-Tech Inc.” seeks to explore all the deliverables which are possible with the agreement. Examples of these deliverables are the payment by Extract for the upgrade of materials based on the fact that there are new regulations…
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Potential Deliverables in the Arrangement: Homo-Tech Inc

Download file to see previous pages... The identification of the FDA requirements as a deliverable is motivated by the fact that the changes may affect an aspect that needs to be changed in their products and the Hemo would incur tremendous expenses to meet such eventualities.
 Thus, to caution against all such unforeseen circumstances, the company should include the factor as a potential deliverable. Another possible deliverable is the training of the Extract employees on how to use the new instruments for best results. Extract company should be charged for that service. The identification of this as a deliverable is based on the criteria of time, where Hemo will spend time resource to train Extract employees. These are the potential deliverables which Hemo should have considered also.
 Q2. In order to allocate the arrangement consideration to all the deliverables identified, Hemo needs to determine the selling price for each deliverable. Should Hemo use vendor-specific objective evidence (VSOE), third-party evidence (TPE), or its best estimate of the selling price (ESP) to determine the selling price of the following deliverables: (1) equipment, (2) discount on future supplies, and (3) screen and report services?
 In determining the selling price of the equipment deliverables, Hemo should use its best estimate of the price (ESP) to estimate the price. This is because the company has invested much of its resources to research and development and considered various players in the market including the different competitors that they have. Through this, they can be able to use the best estimate of the price which will allow them to arrive at a price that is convenient for the company and the customers. ...Download file to see next pagesRead More
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