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%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

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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 $1,750 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. 1. Adjusted Market Assessment = 2. Expected…
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 $1,750 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. 1. Adjusted Market Approach 2. Expected Cost…
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, andon-site installation by VP staff. The installation includes programming the remote to have the TV interface withother parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installationservice are separate performance obligations. VP sells the 60-inch TV separately for $1,750 and sells the remoteseparately 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 incursapproximately $100 of compensation and other costs for VP staff to provide the installation service. VP typicallycharges 40% above cost on similar sales.Required:1. Estimate the stand-alone selling price of the installation service using the adjusted market assessment approach.2. Estimate the stand-alone selling price of the…
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.
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?
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 P17,500, 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 charge P1,500 for the installation service. SONI also estimated that it incurs approximately P1,000 of compensation and other costs for SONI staff to provide the installation service. SONI typically charges 40% above cost on similar sales. Estimate the stand-alone selling price of the installation service using the estimated cost plus a margin approach a. 1,400 b. 500 Estimate the…
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?
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
Wilson Links Products sells a product that involves two separate performance obligations: the SwingRight golf club weight and the SwingCoach teaching software. SwingRight has a stand-alone selling price of $185. Wilson sells both the SwingRight and the SwingCoach as a package deal for $270. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $170 for similar software, and Wilson’s prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $100 of cost per copy of the software, and usually charges 50% above cost on similar products.Estimate the stand-alone selling price of the software using the adjusted market assessment approach.
Flounder Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Flounder Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $469. The standalone selling price of the tablet is $230 (the cost to Flounder Company is $157). Flounder Company sells the Internet access service independently for an upfront payment of $292. On January 2, 2020, Flounder Company signed 100 contracts, receiving a total of $46,900 in cash. 2. Flounder Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $574. Flounder Company provides the 3-year tablet service plan as a separate product with a standalone selling…
Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Windsor enters into the following contract on June 1, 2018, with a local homeowner. The customer purchases windows for a price of £4,700 and chooses Windsor to do the installation. Windsor charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £1,200. The customer pays Windsor £4,000 (which equals the fair value of the windows, which have a cost of £2,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2018, Windsor completes installation on September 15, 2018, and the customer pays the balance due. Prepare the journal entries for Windsor in 2018. (Round…