1. For the equipment Hemo-Tech should use its best estimate of selling price. Since it does not have a price on its own and the two competitors’ sell a different model or the same model to a different set of customers, it must use its best estimate according to 605-25-30-6C. ASC 605-25-30-6C states: The vendor’s best estimate of selling price shall be consistent with the objective of determining vendor-specific objective evidence of selling price for the deliverable; that is, the price at which the vendor would transact if the deliverable were sold by the vendor regularly on a standalone basis. The vendor shall consider market conditions as well as entity-specific factors when estimating the selling price. ASC 605-25-30-6C states the principle that best estimate of selling price should be “the price at which the vendor would transact if the deliverable were sold by the vendor regularly on a standalone basis.” Since the cost to manufacture the equipment including labor, materials, and allocated R&D is known, as well as an estimated markup based on its history of margins as well as the added benefits of the new model, a reasonable estimate can be made.

2. For the discount on future supplies Hemo-Tech should use vendor specific objective evidence for pricing the discount. This is because 605-25-30-6A identifies that the price of the deliverable is the price when it is sold separately. Vendor-specific objective evidence of selling price is limited to either of the following:
a. The price charged for a deliverable when it is sold separately
b. For a deliverable not yet being sold separately, the price established by management having the relevant authority (it must be probable that the price, once established, will not change before the separate introduction of the deliverable into the marketplace). Since Hemo-Tech sells the boxes of supplies separately for $3,000, then this is the price at which the discount should be applied.
985-605-15-3 The guidance in this Subtopic applies to the following transactions and activities: a. Licensing, selling, leasing, or otherwise marketing computer software. Any revenue attributable to the software, including post contract customer support, shall be accounted for separately in conformity with the guidance in this The software and software-related elements of Other arrangements for 
products or services that include software that is more than incidental more-than-incidental to the products or services in the arrangement as a whole. Indicators that of software that is more-than-incidental to the products or services in an arrangement a product as a whole include
(but are not limited to): 1. The software is a significant focus of the marketing effort or is sold separately. 2. The vendor is providing postcontract customer support. 3. The vendor incurs significant costs that are within the scope of 
Subtopic 985-20.