Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bramble Tech Inc. sells new accounting software and user support bundled together. The fair value of its software is ( $ 760 ), and the

image text in transcribed Bramble Tech Inc. sells new accounting software and user support bundled together. The fair value of its software is \\( \\$ 760 \\), and the fair value of the associated user support is \\( \\$ 290 \\). The user support is valid for a period of 12 months from the date of software purchase. To be able to compete with Bramble Tech's product and service offering as a new competitor, Crane Ltd. decided to sell its own software and service as a bundle for \\( \\$ 800 \\). During its first month of sales, 100 units of this software bundle were sold at the discounted price, and expenses were \\( \\$ 64500 \\). Using the adjusted market approach what value should Bramble Tech assign to user support for the first month? \\( \\$ 80000 \\) \\( \\$ 76000 \\) \\( \\$ 29000 \\) \\( \\$ 22100 \\)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Leading The Digital Workforce Internal Audit And IT Audit

Authors: Jeffrey W. Brown

1st Edition

1032323736, 978-1032323732

More Books

Students also viewed these Accounting questions

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

f. What stereotypes were reinforced in the commercials?

Answered: 1 week ago