b + c

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 stoft. 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 $1.890 and sells the remote separately for $170, and offers the entire package for $2180, VP does not sell the installation service separately, VP is aware that other similar vendors charge $220 for the installation service VP also estimates that it Incurs approximately $170 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. Stand Alone Selling Price $ 220 Adjusted market assessment Expected cost plus margin Residual