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

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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