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Cullumber Center is an experienced home appliance dealer. Cullumber Center also offers a number of services for the home appliances that it sells. Assume that Cullumber Center sells ovens on a standalone basis. Cullumber Center also sells installation services and maintenance services for ovens. However, Cullumber Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $190. Additionally, the incremental amount charged by Cullumber Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Cullumber Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $800. Oven Assume that a customer purchases an oven with both installation and maintenance services for $936. Based on its experience, Cullumber Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct). Installation (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Maintenance CA CA LA $800 850 759 990 47 936 129

Cullumber Center is an experienced home appliance dealer. Cullumber Center also offers a number of services for the home appliances that it sells. Assume that Cullumber Center sells ovens on a standalone basis. Cullumber Center also sells installation services and maintenance services for ovens. However, Cullumber Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $190. Additionally, the incremental amount charged by Cullumber Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Cullumber Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $800. Oven Assume that a customer purchases an oven with both installation and maintenance services for $936. Based on its experience, Cullumber Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct). Installation (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Maintenance CA CA LA $800 850 759 990 47 936 129

Accounting Information Systems
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter10: The Rea Approach To Database Modeling
Section: Chapter Questions
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* Your answer is incorrect. Cullumber Center is an experienced home appliance dealer. Cullumber Center also offers a number of services for the home appliances that it sells. Assume that Cullumber Center sells ovens on a standalone basis. Cullumber Center also sells installation services and maintenance services for ovens. However, Cullumber Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $190. Additionally, the incremental amount charged by Cullumber Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Cullumber Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $800. Assume that a customer purchases an oven with both installation and maintenance services for $936. Based on its experience, Cullumber Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct). Oven (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Installation +A $ $ CA Maintenance $ LA $800 850 759 990 936 47 129
Transcribed Image Text:* Your answer is incorrect. Cullumber Center is an experienced home appliance dealer. Cullumber Center also offers a number of services for the home appliances that it sells. Assume that Cullumber Center sells ovens on a standalone basis. Cullumber Center also sells installation services and maintenance services for ovens. However, Cullumber Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $190. Additionally, the incremental amount charged by Cullumber Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Cullumber Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $800. Assume that a customer purchases an oven with both installation and maintenance services for $936. Based on its experience, Cullumber Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct). Oven (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Installation +A $ $ CA Maintenance $ LA $800 850 759 990 936 47 129
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