rtainmentVideo Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VPWinterface with other parts of the customer's homestaff The installation includes programming the remote to have tsystem VP concludes that the TV, remote, and installation service are separate performance obligations VP sells the 60-inch TVthe package for $2.300 VP does not sell theseparately for $1.950 and sells the remote separately for $200,the installation service VP also estimates thatinstallation service separately Vis aware that other similarprovide the installation service. VP typically charges 30%ncurs approximately $200 of compensation and other costs tabove cost on similar salesRequired:1 to 3. Calculate the stand-alone selling price of the installation service using each of the following approachesAdued market assessmentExpected cost plus marginResidual1,900

Stand-alone selling price is the price separately charged from the customer for the good or service.…

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 s home entertainment staft The installation includes programming the remote to have the TV interface with other parts of the custon system VP concludes that the TV, remote, and installation service are separate performance obligations d offers the entire package for $2.300 separately for $1.950 and sells the remote separately for $200. installation service separately Vis aware that other similar vendors charge $250 for the instalation service ncurs approximately $200 of compensation and other costs for VP staff to provide the installation service VP typic above cost on similar sales Dich TV sell the Required: 1 to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches Add market an Expected cost plus magn Readual 1,960 that it y charges 30%

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 s home entertainment staft The installation includes programming the remote to have the TV interface with other parts of the custon system VP concludes that the TV, remote, and installation service are separate performance obligations d offers the entire package for $2.300 separately for $1.950 and sells the remote separately for $200. installation service separately Vis aware that other similar vendors charge $250 for the instalation service ncurs approximately $200 of compensation and other costs for VP staff to provide the installation service VP typic above cost on similar sales Dich TV sell the Required: 1 to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches Add market an Expected cost plus magn Readual 1,960 that it y charges 30%

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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