Ayayai Appliance Center is an experienced home appliance dealer Ayayai Appliance Center also offers a number of services for the home appliances that it sells Assume that Ayayai Appliance Center sells ovens on a standalone basis Ayayai Appliance Center also sells installation services and maintenance services for ovens However, Ayayai Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors Pricing for ovens is as follows Oven only $790 Oven with installation service 840 Oven with maintenance services 960 Oven with installation and maintenance services 990 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $170 Additionally, the incremental amount charged by Ayayai Appliance 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 Ayayai Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790 Assume that a customer purchases an oven with both installation and maintenance services for $990 (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 2 decimal places ) Ayayai Appliance Center is an experienced home appliance dealer Ayayai Appliance Center also offers a number of services for the home appliances that it sells Assume that Ayayai Appliance Center sells ovens on a standalone basis Ayayai Appliance Center also sells installation services and maintenance services for ovens However, Ayayai Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors Pricing for ovens is as follows $790 840 Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services 960 990 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $170 Additionally, the incremental amount charged by Ayayai Appliance 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 Ayayai Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790 Assume that a customer purchases an oven with both installation and maintenance services for $990 (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 2 decimal places ) Oven A Installation A Maintenance $

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Ayayai Appliance Center is an experienced home appliance dealer. Ayayai Appliance Center also offers a number of services for the home appliances that it sells.

Oven only		$790
Oven with installation service		840
Oven with maintenance services		960
Oven with installation and maintenance services		990

In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $170. Additionally, the incremental amount charged by Ayayai Appliance 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 Ayayai Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. Assume that a customer purchases an oven with both installation and maintenance services for $990. (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 2 decimal places.) image text in transcribed

Ayayai Appliance Center is an experienced home appliance dealer. Ayayai Appliance Center also offers a number of services for the home appliances that it sells. Assume that Ayayai Appliance Center sells ovens on a standalone basis. Ayayai Appliance Center also sells installation services and maintenance services for ovens. However, Ayayai Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. $790 840 Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services 960 990 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $170. Additionally, the incremental amount charged by Ayayai Appliance 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 Ayayai Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. Assume that a customer purchases an oven with both installation and maintenance services for $990. (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 2 decimal places.) Oven A Installation A Maintenance $