Stand-alone revenue allocation. Magic Systems, Inc., sells computer hardware to end consum- ers. 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 manufac- turing division of Magic Systems and can be purchased individually as well as in a bundle. Magic Systems sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as follows: Individual Selling Price per Unit Cost per Unit Computer Component PC tower Monitor Color laser printer Computer bundle purchase price $1,150 $ 250 $ 600 $375 $200 $225 $1,500
Stand-alone revenue allocation. Magic Systems, Inc., sells computer hardware to end consum- ers. 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 manufac- turing division of Magic Systems and can be purchased individually as well as in a bundle. Magic Systems sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as follows: Individual Selling Price per Unit Cost per Unit Computer Component PC tower Monitor Color laser printer Computer bundle purchase price $1,150 $ 250 $ 600 $375 $200 $225 $1,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit.
![Stand-alone revenue allocation. Magic Systems, Inc., sells computer hardware to end consum-
ers. 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 manufac-
turing division of Magic Systems and can be purchased individually as well as in a bundle. Magic Systems
sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as
follows:
Individual Selling Price per Unit Cost per Unit
Computer Component
PC tower
Monitor
Color laser printer
Computer bundle purchase price
$1,150
$ 250
$ 600
$375
$200
$225
$1,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6314d9b6-1341-48e4-8b4d-082832567727%2F40f8e6d8-1349-4a80-b655-9a24a159ef1d%2Fl1gaicn.jpeg&w=3840&q=75)
Transcribed Image Text:Stand-alone revenue allocation. Magic Systems, Inc., sells computer hardware to end consum-
ers. 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 manufac-
turing division of Magic Systems and can be purchased individually as well as in a bundle. Magic Systems
sells roughly equal quantities of the three products. The individual selling prices and per unit costs are as
follows:
Individual Selling Price per Unit Cost per Unit
Computer Component
PC tower
Monitor
Color laser printer
Computer bundle purchase price
$1,150
$ 250
$ 600
$375
$200
$225
$1,500
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