Sandhill Center is an experienced home appliance dealer. Sandhill Center also offers a number of...

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Accounting

Sandhill Center is an experienced home appliance dealer. Sandhill Center also offers a number of services for the home appliances that it sells. Assume that Sandhill Center sells ovens on a standalone basis. Sandhill Center also sells installation services and maintenance services for ovens. However, Sandhill Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows.
Oven only
Oven with installation service
ven with maintenance services
Oven with installation and maintenance services
$790
860
990
954
In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $200. Additionally, the incremental amount charged by Sandhill Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Sandhill Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790.
Assume that a customer purchases an oven with both installation and maintenance services for $954. Based on its experience, Sandhill Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct).
(b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to 0 decimal places, e.g.5,275.)
Oven
$
Installation
$
Maintenance
$
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