Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Future Incorp. is an experienced home appliance dealer. Future Incorp. also offers a number of services together with the home appliances that it sells. Assume
Future Incorp. is an experienced home appliance dealer. Future Incorp. also offers a number of services together with the home appliances that it sells. Assume that Future Incorp. sells ovens on a stand-alone basis. Future Incorp. also sells installation services and maintenance services for ovens. However, Future Incorp. does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services $920 989 1,081 1,100 In each instance in which maintenance services are provided, service is separately priced within the arrangement at $161. Additionally, the incremental amount charged by Future Incorp. 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 Future Incopr. does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $920. Assume that a customer purchases an oven with both installation and maintenance services for $1,100. Assume that a customer purchases an oven with both installation and maintenance services for $1,100. Allocate the transaction price of $1,100 among the performance obligations of the contract. (Round percentage allocations to 2 decimal places, e.g. 12.25 and final answers to 0 decimal places, e.g. 5,275.) Oven Installation Maintenance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started