Exercise 6-15 (Algo) Approaches for estimating stand-alone selling prices [LO6-6]Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VPstaff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainmentsystem. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TVseparately for $1,790, sells the remote separately for $120, and offers the entire package for $1,980. VP does not sell the installationservice separately. VP is aware that other similar vendors charge $170 for the installation service. VP also estimates that it incursapproximately $120 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% abovecost 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 assessmentExpected cost plus marginResidualStand-Alone SellingPrice

The stand-alone price indicates a product's or service's fair market value when offered…

Video Planet (VP) sells a big screen TV package consil staff. The installation includes programming the remot system. VP concludes that the TV, remote, and installar separately for $1,790, sells the remote separately for $ service separately. VP is aware that other similar vend- approximately $120 of

Video Planet (VP) sells a big screen TV package consil staff. The installation includes programming the remot system. VP concludes that the TV, remote, and installar separately for $1,790, sells the remote separately for $ service separately. VP is aware that other similar vend- approximately $120 of

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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Check Exercise 6-15 (Algo) Approaches for estimating stand-alone selling prices (LO6-6) 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 customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,110 and sells the remote separately for $280, and offers the entire package for $2,620. VP does not sell the installation service separately. VP is aware that other similar vendors charge $330 for the installation service. VP also estimates that it incurs approximately $280 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales. ok ht nt Required: 1. to 3. Calculate the stand-alone selling price of the…
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tes 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 customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations, VP sells the 60-inch TV separately for $1,870, sells the remote separately for $110, and offers the installation service separately for $220. The entire package sells for $2,100. Required: How much revenue would be allocated to the TV, the remote, and the installation service? Note: Do not round intermediate calculations. TV Item Description Remote Installation Total revenue $ Allocated Revenue 0
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 customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,150 and sells the remote separately for $300, and offers the entire package for $2,700. VP does not sell the installation service separately. VP is aware that other similar vendors charge $350 for the installation service. VP also estimates that it incurs approximately $300 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% above cost on similar sales. Required:1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches.
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 customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,700, sells the remote separately for $100, and offers the installation service separately for $200. The entire package sells for $1,900. Required: How much revenue would be allocated to the TV, the remote, and the installation service?
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I need answer of last three requirement I need answer of last three requirement I need answer of last three requirement please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 443.00 per unit Variable costs 203.00 per unit Fixed costs 715,000 per year Assume that the projected number of units sold for the year is 4,400. Consider requirements (b), (c), and (d) independently of each other. Required: 1. What will the operating profit be? 2. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? 3. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? 4. Suppose that fixed costs for…
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 customer's home entertainment systen. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,750 and 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. Calculate the stand-alone selling price of the installation service using each of the following approaches. Stand-Alone Selling Price Adjusted market…
! Required information [The following information applies to the questions displayed below.] UR Safe Systems installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics: Design Specifications Video cameras Video monitors Motion detectors Floodlights Alarms Wiring Installation ICU 100 2 2 1. Current profit margin 2. Profit margin Target cost WEIN ICU 100 1 % % 3 3 710 feet 11 hour 1,150 feet 21 hour The ICU 100 sells for $980 installed, and the ICU 900 sells for $1,690 installed. Required: 1. What are the current gross profit margin percentages on both systems? 2. UR Safe's management believes that it must drop the price on the ICU 100 to $920 and on the ICU 900 to $1,560 to remain competitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current gross profit margin percentages. (For all requirements, round your…
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 customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,870 and sells the remote separately for $160, and offers the entire package for $2,140. VP does not sell the installation service separately. VP is aware that other similar vendors charge $210 for the installation service. VP also estimates that it incurs approximately $160 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. Calculate the stand-alone selling price of the installation service using each of the following approaches. Adjusted market assessment Expected cost plus…
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 customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,500, sells the remote separately for $200, and offers the installation service separately for $300. The entire package sells for $1,900. Required: How much revenue would be allocated to the TV, the remote, and the installation service? Note: Do not round intermediate calculations.