Required information [The following information applies to the questions displayed below.] Great American Oilchange (GAO) sells a combined oil change service and parts package for $46. A customer who supplies the parts (oil and filter) is charged $36 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $36 for the parts. The parts cost GAO $30. Required: 1. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package. TIP: To calculate the percentage of the combined package that relates to the service, divide the stand-alone selling price of the service by the combined stand-alone selling prices of both the service and parts.

Required information [The following information applies to the questions displayed below.] Great American Oilchange (GAO) sells a combined oil change service and parts package for $46. A customer who supplies the parts (oil and filter) is charged $36 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $36 for the parts. The parts cost GAO $30. Required: 1. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package. TIP: To calculate the percentage of the combined package that relates to the service, divide the stand-alone selling price of the service by the combined stand-alone selling prices of both the service and parts.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 3C

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