Accounting Question:

Nashawa Motors is a car dealership that has two types of operations: car sales and service. The two divisions operate independently and, in fact, the showroom for car sales is entirely separate from the service shop. (They are across the street from each other. ) Despite the independence of the two divisions, the company provides incentives to its sales team to sell maintenance packages along with the sale of cars (new and used). Consider the following offer posted on one of the car windows: (Click the icon to view the offer.) As is typical in car sales, the price negotiated between the salesperson and the customer varies in each transaction, even for identical vehicles, and there is a considerable amount of latitude given to the salesperson to adjust the price to "close the deal." In one such transaction for the above car including the premium service package, the final negotiated price was $46,600. (Ignore the time value of money in this problem.) Required Requirement a. Assume that the three prices (for car, basic service package, increment for premium service package) reliably reflect the stand-alone selling price of these items. Compute the revenue that should be recorded on the date of delivery of the car and for each of the next four years Begin by computing the revenue allocation for each of the three car components (car, basic service package, and increment for premium service i Data Table X les, X.XXXX %.) Component Component stand-alone selling price as x Actual Price stand-alone selling price percentage of total sale price = Allocation Car $ 45,800 Car % Basic service package (2 years) 3,700 % 2,700 Basic service package Increment for premium service package (4 years) Increment for premium service package 0/ Total S 52,200 Special offer for car + premium service 48,200 Total % $ Next, complete the table to record revenue in a manner that reflects the timing of the delivery. (Round your answers to the nearest dollar. For peri You save 4,000 Upon delivery Year 1 Year 2 Year 3 Year 4 Print Done Car Choose from any list or enter any number in the input fields and then continue to the next question. ? Save for LaterNashawa Motors is a car dealership that has two types of operations: car sales and service. The two divisions operate independently and. in fact, the showroom for car sales is entirely separate from the service shop. (They are across the street from each other.) Despite the independence of the two divisions, the company provides incentives to its sales team to sell maintenance packages along with the sale of cars (new and used). Consider the following offer posted on one of the car windows: (Click the icon to view the offer.) As is typical in car sales, the price negotiated between the salesperson and the customer varies in each transaction, even for identical vehicles, and there is a considerable amount at latitude given to the salesperson to adjust the price to "close the deal." In one such transaction for the above car including the premium service package, the nal negotiated price was $46,600. (ignore the time value of money in this problem.) Required Next, complete the table to record revenue in a manner that reects the timing of the delivery. (Round your answers to the nearest dollar. For periods where there is no revenue allocated. make sure to enter "0" in the appropriate column.) Car | Basic service package Incrementfor premium service package I Total Nashawa Motors is a car dealership that has two types of operations: car sales and service. The two divisions operate independently and. in fact, the showroom for car sales is entirely separate from the service shop. (They are across the street from each other.) Despite the independence of the two divisions, the company provides incentives to iB sales team to sell maintenance packages along with the sale of cars (new and used). Consider the following offer posted on one of the car windows: (Click the icon to view the offer.) As is typical in car sales, the price negotiated between the salesperson and the customer varies in each transaction, even for identical vehicles, and there is a considerable amount of latitude given to the salesperson to adjust the price to "close the deal.'I In one such transaction for the above car including the premium service package, the nal negotiated price was $46,600. (Ignore the time value of money in this problem.) Required Requirement b. Similar to part (a), assume that the component prices reliably reect their stand-alone selling prices, except that the premium package (basic + increment for premium) should be considered together for a price of $6,400. Compute the revenue that should be recorded on the date of delivery of the car and for each of the next four years. Begin by computing the revenue allocation for the car components (car and premium service package). (Round your answers to the nearest dollar. Round percentages to four decimal places. X.XXXX %.) Car 7 I % ' Premium service package % I Total I I as = Next, determine the timing of the revenue recognition for the two car components. (Round your answers to the nearest cent. For periods where there is no revenue allocated, make sure to enter "0" in the appropriate column.) Car I I Premium service package Total Choose from any list or enter any number in the input fields and then continue to the next question. . Save for Later 4 . 4 D Requirement c. The service shop also offers the service packages to other car owners regardless of where they purchased their vehicles. The established price for the basic package is $2,200 and for the premium package is $4,000 (meaning the increment is $1 ,800 to upgrade from the basic to the premium package). Actual sale prices of the car itself are diflicult to obtain due to various customizations that buyers demand, so it is only possible to determine a range of prices, from $49,000 to $53,000. Based on these assumed facts, determine the amount of revenue that should be recorded upon delivery of the car. (Use parentheses or a minus sign for numbers to be subtracted) Total sale price Residual amount allocated to car Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later