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Office Magic, Inc., sells computer hardware to end consumers. The CX30 is sold as a "bundle", which includes three hardware products: a personal computer (PC) tower, a 26-inch monitor, and a color laser printer. Each of these products is made in a separate manufacturing division of Office Magic and can be purchased individually as well as in a bundle. Office Magic sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as follows: E (Click to view the data.) Read the requirements. Requirement 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. (Enter the allocation proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest whole dollar.) Computer component Allocation Proportion Revenue Allocated PC tower i Requirements Monitor þata Table Color laser printer 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. 2. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit. Computer Component Individual Selling Price Per Unit Cost Per Unit PC Tower %24 912 $ 164 Enter any number in t Monitor 272 $ 72 3. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). 4. Which basis of allocation makes the most sense in this situation? Explain your Color laser printer 416 $ 164 parts remaining Computer bundle purchase price 2$ 1,500

Office Magic, Inc., sells computer hardware to end consumers. The CX30 is sold as a "bundle", which includes three hardware products: a personal computer (PC) tower, a 26-inch monitor, and a color laser printer. Each of these products is made in a separate manufacturing division of Office Magic and can be purchased individually as well as in a bundle. Office Magic sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as follows: E (Click to view the data.) Read the requirements. Requirement 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. (Enter the allocation proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest whole dollar.) Computer component Allocation Proportion Revenue Allocated PC tower i Requirements Monitor þata Table Color laser printer 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. 2. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit. Computer Component Individual Selling Price Per Unit Cost Per Unit PC Tower %24 912 $ 164 Enter any number in t Monitor 272 $ 72 3. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). 4. Which basis of allocation makes the most sense in this situation? Explain your Color laser printer 416 $ 164 parts remaining Computer bundle purchase price 2$ 1,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Office Magic, Inc., sells computer hardware to end consumers. The CX30 is sold as a "bundle", which includes three hardware products: a personal computer (PC) tower, a 26-inch monitor, and a color laser printer. Each of these products is made in a separate manufacturing division of Office Magic and can be purchased individually as well as in a bundle. Office Magic sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as follows: (Click to view the data.) Read the requirements. Requirement 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. (Enter the allocation proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest whole dollar.) Computer component Allocation Proportion Revenue Allocated PC tower i Requirements Monitor Pata Table Color laser printer 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. Computer Component Individual Selling Price Per Unit Cost Per Unit РС Tower 912 $ 164 2. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit. Enter any number in th Monitor 272 $ 72 3. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). Color laser printer 416 $ 164 3 parts remaining Computer bundle purchase price 1,500 4. Which basis of allocation makes the most sense in this situation? Explain your %24 %24
Transcribed Image Text:Office Magic, Inc., sells computer hardware to end consumers. The CX30 is sold as a "bundle", which includes three hardware products: a personal computer (PC) tower, a 26-inch monitor, and a color laser printer. Each of these products is made in a separate manufacturing division of Office Magic and can be purchased individually as well as in a bundle. Office Magic sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as follows: (Click to view the data.) Read the requirements. Requirement 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. (Enter the allocation proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest whole dollar.) Computer component Allocation Proportion Revenue Allocated PC tower i Requirements Monitor Pata Table Color laser printer 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. Computer Component Individual Selling Price Per Unit Cost Per Unit РС Tower 912 $ 164 2. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit. Enter any number in th Monitor 272 $ 72 3. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). Color laser printer 416 $ 164 3 parts remaining Computer bundle purchase price 1,500 4. Which basis of allocation makes the most sense in this situation? Explain your %24 %24
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