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 $1,830 and sells the remote separately for $140, and offers the entire package for $2,060. VP does not sell the installation service separately. VP is aware that other similar vendors charge $190 for the installation service. VP also estimates that it incurs approximately $140 of compensation and other costs for VP staff to provide the installation service. VP typically charges 30% 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 margin Residual Stand-Alone Selling Price

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 $1,830 and sells the remote separately for $140, and offers the entire package for $2,060. VP does not sell the installation service separately. VP is aware that other similar vendors charge $190 for the installation service. VP also estimates that it incurs approximately $140 of compensation and other costs for VP staff to provide the installation service. VP typically charges 30% 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 margin Residual Stand-Alone Selling Price

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter17: Acquiring And Implementing Accounting Information Systems

Section: Chapter Questions

Problem 1SP

See similar textbooks

Similar questions

Problem 18-04 Bridgeport Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Bridgeport’s main products are as follows. Item StandaloneSelling Price (Cost) Refrigerator $500 ($260 ) Range 570 (270 ) Stackable washer/dryer unit 690 (400 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800. The bundle price includes delivery and installation. Bridgeport also provides installation (not a separate performance obligation).Respond to the requirements related to the following independent revenue arrangements for Bridgeport Appliance Co. 1. YellowCard Property Managers operates upscale student apartment buildings. On May 1, 2020, Bridgeport signs a contract with YellowCard for 280 appliance bundles to be delivered and installed in one of its…
Problem 18-04 Bridgeport Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Bridgeport’s main products are as follows. Item StandaloneSelling Price (Cost) Refrigerator $500 ($260 ) Range 570 (270 ) Stackable washer/dryer unit 690 (400 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800. The bundle price includes delivery and installation. Bridgeport also provides installation (not a separate performance obligation).Respond to the requirements related to the following independent revenue arrangements for Bridgeport Appliance Co. 1. On June 1, 2020, Bridgeport sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units.…
46.Sonya,Inc. (SONI) sells a big screen. TV package consisting of a 60-inch plasma TV, a universal remote, and onsite installation by SONI staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. SONI concludes that the TV, remote, and installation service are separate performance obligations. SONI sells the 60-inch TV separately for P17,000,sells the remote separately for P1,000, and offers the installation service separately for P2,000. The entire package sells for P19,000.How much revenue would be allocated to the TV, the remote, and the installation service,respectively? a. P16,150; P950;P1,900 b. 0;P1,900
Q. 8 Which following costs need to be considered for both make or buy options? O. Fixed overhead O. Variable overhead O. Rental revenue Q. 9 What is the per unit cost to purchase from the vendor? Round to the nearest penny. Q. 10 Based on your analysis, the CreativeStationary Co. should make the product in-house or buy them from the vender? O. Make O. Buy Do (Q8,9,10 plz)
Onawa Ltd manufactures a top-selling electronic spreadsheet product called Cell 123. Onawa is aboutto release version 8. It divides its customers into 2 groups: new customers and upgrade customers(those who previously purchased Cell 123, version 7 or earlier versions). Although the same physicalproduct is provided to each customer group, sizeable differences exist in selling prices and variablemarketing costs New customers Upgrade customers N$ N$ Selling price 210 120 Variable costs: Manufacturing (25) (25) Marketing (65) (15) The fixed costs of Cell 8 are N514 000 000. The planned ratio of new customers to upgrade customers isexpected to be 6:4 respectively requirement:a) Calculate Onawa Ltd individual break-even point both in units and sales revenue, assuming thatthe customers will come as planned.b) Ifthe planned sales mix is attained, calculate the operating income when 200 000 units are sold.c) The CVP analysis as any management tool has some limitations.…
Ma1. 7) Bluebird Manufacturing has received a special one-time order for 16,600 bird feeders at $4.60 per unit. Bluebird currently produces and sells 75,000 units at $8.60 each. This level represents 80% of its capacity. Production costs for these units are $5.10 per unit, which includes $3.85 of variable costs and $2.85 of fixed costs. If the special offer is accepted, there will be no incremental fixed cost. If Bluebird accepts this additional business, the effect on income will be: Multiple Choice $12,450 increase. $8,300 decrease. $76,360 increase. $63,910 increase. $63,910 decrease.
(5) Stryker Industries received an offer from an exporter for 24,000 units of product at $17 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 10 Fixed 3 What is the differential cost from the acceptance of the offer? a.$408,000 b.$240,000 c.$504,000 d.$72,000
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 $1,435, sells the remote separately for $205, and offers the installation service separately for $410. The entire package sells for $1,950. Required: How much revenue would be allocated to the TV, the remote, and the installation service? Note: Do not round intermediate calculations.
Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $40, which includes fixed costs of $13 per unit. An outside provider of this component has offered to sell Lockrite the component for $29. Provide a differential analysis of the outside purchase proposal. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Component (Alternative 1) or Buy Component (Alternative 2) MakeComponent(Alternative 1) BuyComponent(Alternative 2) DifferentialEffects(Alternative 2) Unit costs: Purchase price Variable costs Fixed costs Total unit costs $
ch7-45- I have asked this question earlier and i found a possible miscalculation for the total variable costs in step 3. Please check and confirm. ch7-Q#45 Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 20,000 portable grills, 50,000 stationary grills, and 5,000 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $90 $205 $252 Variable cost per unit 46 132 140 Total fixed cost is $2,219,240. Required: 1. What is the sales mix of portable grills to stationary grills to smokers? 2. Compute the break-even quantity of each product. 3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution…
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.
Sonya, Inc. (SONI) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote,and onsite installation by SONI staff. The installation includes programming the remote to have theTV interface with other parts of the customer’s home entertainment system. SONI concludes that theTV, remote, and installation service are separate performance obligations. SONI sells the 60-inch TVseparately for P17,500, sells the remote separately for P1,000 and offers the entire package P19,000.SONI does not sell the installation service separately. SONI is aware that other similar vendors chargeP1,500 for the installation service. SONI also estimated that it incurs approximately P1,000 ofcompensation and other costs for SONI staff to provide the installation service. SONI typicallycharges 40% above cost on similar sales.Estimate the stand-alone selling price of the installation service using the adjusted marketassessment approach?