Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. video planet (vp) sells a big screen tv package co

Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV,...

70.2K

Verified Solution

Question

Accounting

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 customers home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,750, sells the remote separately for $100, and offers the entire package for $1,900. VP does not sell the installation service separately. VP is aware that other similar vendors charge $150 for the installation service. VP also estimates that it incurs approximately $100 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales.

Required:

1. to 3. Estimate the stand-alone selling price of the installation service using each of the following approaches.

adjusted market assessment:

expected cost plus margin:

residual:

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Refrigerant R-134a enters the compressor of a refrigeration machine at 140 kPa pressure and -10 °...

Mechanical Engineering
Q

If a population with harvesting rate h is modeled by dx/dt = 9-x^2-h. Find the bifurcation...

Advance Math
Q

Which of the following is incorrect about Lenz s law It explains the physical significance...

Physics
Q

Splcewood Stables, Incorporated, was established In Dripping Springs, Texas, on Aprll 1. The...

Accounting
Q

The unrealized gain (loss) at the date of transfer is recognized in...

Accounting
Q

The standard cost of Product B manufactured by Pharrell Company includes 2.8 units of direct...

Accounting
Q

Laker Company reported the following January purchases and sales data for its only product. Date...

Accounting
Q

If you were contemplating an investment in any of these two airline companies (Qantas and...

Accounting
Q

If the Pulp Division meets the price that the Carton Division is currently paying to...

Accounting
Q

In a financial report audit, which of the following procedures is a substantive test of...

Accounting
Q

Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In...

Accounting
Q

Concord Company has gathered the following information. Units in beginning work in process inventory Units...

Accounting