Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations.
VP sells the 60-inch TV separately for $2,090 and sells the remote separately for $270, and offers the entire package for $2,580.
VP does not sell the installation service separately.
VP is aware that other similar vendors charge $320 for the installation service.
VP also estimates that it incurs approximately $270 of compensation and other costs for VP staff to provide the installation service.
VP typically charges 50% above cost on similar sales.
Required:
Calculate the stand-alone selling price of the installation service using each of the following approaches.
1. Price Adjusted market assessment
2. Expected cost plus margin
3. Residual
Solved
Show answers
More tips
- F Food and Cooking How to Make Polendwitsa at Home?...
- F Family and Home Parents or Environment: Who Has the Most Influence on a Child s Upbringing?...
- P Philosophy Unbelievable stories of encounters with otherworldly forces...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- H Health and Medicine How to Treat Whooping Cough in Children?...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
Ответ: