Beaumont Company is contracted to provide a high quality scuba certification preparation package, including goggles, snorkels, air tanks, fins, a wetsuit and 5 private lessons to prepare you for scuba certifications. The complete package sells for $2,500.

Other competing sellers in the same region charge an average of $250 for a set of glasses and $750 for the lessons, if sold separately. Beaumont Company often sells at a 5% discount compared to other stores as it is a little further from the ocean.

1. 1. Required: What would be the stand-alone selling price of Beaumont glasses and lessons, based on the adjusted market assessment approach? Show calculations.
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3. 2. Beaumont typically incurs $375 in compensation and other costs to provide private lessons, earning an average of 40% profit on the cost of service offerings. 
4. Required: Assuming the scuba equipment and certification lessons are separate performance obligations, calculate the stand-alone selling price of the certified lessons based on the expected cost plus margin approach. show calculations
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6. 3. Typically, if Beaumont were to sell just the equipment, he would ask for $2,000. 
7. Required: Assuming the scuba equipment and certification lessons are separate performance obligations, calculate the stand-alone sales price of the lessons based on the residual approach. Show calculations.