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Current Attempt in Progress Cullumber Center is an experienced home appliance dealer. Cullumber Center also affers a number af services for the hame applinnces that
Current Attempt in Progress Cullumber Center is an experienced home appliance dealer. Cullumber Center also affers a number af services for the hame applinnces that it sells. Assume that Cullumber Center sells ovens on a standalone basis. Cullumber Center also sells installation services and maintenance services for overs. However, Cullumber Center does not offer installation or maintenance services to customers who buy avens from other vendors. Pricing for ovens is as follaws. In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at \$190. Additionally, the incremental amount charged by Cullumber Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Cullumber Center does not complete the service satisfactarily, the customer is only entitled to a refund of the partion of the fee that exeeds $900. Assume that a customer purchases an oven with both installation and maintenance services for $936. Based on its experience, Cullumber Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e, the three components are distinct). (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to 0 decimal places, e. 5,275. Current Attempt in Progress Cullumber Center is an experienced home appliance dealer. Cullumber Center also affers a number af services for the hame applinnces that it sells. Assume that Cullumber Center sells ovens on a standalone basis. Cullumber Center also sells installation services and maintenance services for overs. However, Cullumber Center does not offer installation or maintenance services to customers who buy avens from other vendors. Pricing for ovens is as follaws. In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at \$190. Additionally, the incremental amount charged by Cullumber Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Cullumber Center does not complete the service satisfactarily, the customer is only entitled to a refund of the partion of the fee that exeeds $900. Assume that a customer purchases an oven with both installation and maintenance services for $936. Based on its experience, Cullumber Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e, the three components are distinct). (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to 0 decimal places, e. 5,275
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