Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Best Solutions, Inc., els computer hardware to end consumers. The CX30 is sold as a bundle, which includes three hardware products: a personal computer (PC)

image text in transcribed
image text in transcribed
image text in transcribed
Best Solutions, Inc., els computer hardware to end consumers. The CX30 is sold as a "bundle, which includes three hardware products: a personal computer (PC) tower, a 25-inch monitor and a color laser printer Each of these product is made in a separate manufacturing division of Best Solutions and can be purchased individually as well as in a bundle Best Solutions sols roughly equal quantities of the three products. The individual selling prices and per unit costs are as follows: (Click to view the data) Read the requirements Requirement 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual sing priceperunt Enter the action proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest Whole dollar) Computer component Allocation Proportion Revenue Allocated PC tower Monitor Color laser printer Data Table Computer Component PC Tower Monitor Color laser printer Computer bundle purchase price Individual Selling Price Per Unit Cost Per Unit 624 $ 176 192 $ 384 $ 900 84 140 Print Done Requirements ng 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. 2. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit. 3. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). 4. Which basis of allocation makes the most sense in this situation? Explain your answer. Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions