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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Could anyone explain why a Profitability Index may lead to inaccurate decisions when comparing mutually exclusive...

Finance
1.2K views

Suppose that zero interest rates with continuous compounding are as follows: Maturity( years) Rate (% per annum) 1 4.0 2 4.3 3 4.5 4 4.7 5 5.0 Calculate forward...

Psychology
1.2K views

Please no copy and paste. Discuss one of the Barriers within the profession as explained by Schafer....

General Management
1.2K views

You are a junior sales associate working for Chicago BMW Motorcycle. Because of the economic crises,...

Algebra
1.2K views

work Part I ind the limits in a through c below for t Sill

Algebra
1.2K views

6 Find the axis of symmetry and vertex algebraically graph the function represented by f...

Accounting
1.2K views

What is meant by the concept of rotational investing?

Accounting
1.2K views

Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company's accounting system says...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] On July 23 of...

Accounting
1.2K views

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company...

Accounting
1.2K views

Sam Johnson, a calendar-year taxpayer, applied for and received an extension for filing his Year...

Accounting
1.2K views

Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas...