Sheridan Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2025, customers purchase products for $250,000 (with a cost of $132,500) and earn 25,000 points redeemable for future purchases. Sheridan expects 20,300 points to be redeemed. Sheridan estimates a standalone selling price of $2.50 per point (or $62,500 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Sheridan concludes that the points are a separate performance obligation.