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Brief Exercise 6-22 (Algo) Estimating stand-alone selling prices: expected cost plus margin approach [LO6-6] O'Hara Associates sells golf clubs, and with each sale of
Brief Exercise 6-22 (Algo) Estimating stand-alone selling prices: expected cost plus margin approach [LO6-6] O'Hara Associates sells golf clubs, and with each sale of a full set of clubs provides complementary club-fitting services. A full set of clubs with the fitting services sells for $1,430. O'Hara estimates that it incurs $40 of staff compensation and other costs to provide the fitting services, and normally earns 30% over cost on similar services. Assuming that the golf clubs and the club-fitting services are separate performance obligations, estimate the stand-alone selling price of the club-fitting services using the expected cost plus margin approach. Stand-alone selling price
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