Cullumber’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $94 on January 2,

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Cullumber’s Agency sells an insurance policy offered by Capital
Insurance Company for a commission of $94 on January 2, 2020.
In addition, Cullumber will receive an additional
commission of $12 each year for as long as the policyholder
does not cancel the policy. After selling the
policy, Cullumber does not have any remaining performance
obligations. Based on Cullumber’s significant experience with
these types of policies, it estimates that policyholders on average
renew the policy for 4.5 years, which results in an expected policy
life of 5.5 years. It has no evidence to suggest that previous
policyholder behavior will change.
(a)
Determine the transaction price of the arrangement
for Cullumber, assuming 70 policies are
sold. (Round answer to 0 decimal places, e.g.
5,125.)