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I need help with this question Brta Furniture sells bed frames and mattresses, One of its products is a premium therapeutic bed set produced by
I need help with this question
Brta Furniture sells bed frames and mattresses, One of its products is a premium therapeutic bed set produced by omins ieep. which. comes with a mattress and a bed frame, Bria offers a package consisting of the mattress, the frame, and on-che instaliatoon by is statf All of these components can be sold separately, as often done by other vendors, so Brla concludes that these are separate, performance obligations. Bria sells the Omnisleep package for $4.800. The mattress and the frame are sold separately for $2.900 and $1.770. respectively. Other vendors in the same area typically charge $370 for on-site installation. Bnla does not sell on-site installation separately. On average, the prices charged by Brta are 10% higher than those of its competrors. Bria estimates that it incuis about. $130 of compensation and other costs to provide the installation semice. The profit margin over cost is estimated to be approvimatety 40 Required: (a) Eistrmate the stand-atone seling price of the installation service using the adjusted matket assessment approach (b) Estimate the stand-alone selting price of the installation service usting the expected cost plus margin approach. (c) Estumate the stand-3lone selling price of the installation service using the residual approoch Step by Step Solution
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