Question
I NEED THE ANSWERS TO THE BLANKS AT THE BOTTOM. ** INCLUDING THE CALCULATIONS ** Appliance Center is an experienced home appliance dealer. Appliance Center
I NEED THE ANSWERS TO THE BLANKS AT THE BOTTOM. ** INCLUDING THE CALCULATIONS **
Appliance Center is an experienced home appliance dealer. Appliance Center also offers a number of services together with the home appliances that it sells. Assume that Appliance Center sells ovens on a standalone basis. Appliance Center also sells installation services and maintenance services for ovens. However, Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows.
Oven only | $804 | |
Oven with installation service | 911 | |
Oven with maintenance services | 977 | |
Oven with installation and maintenance services | 1,080 |
In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $173. Additionally, the incremental amount charged by Appliance 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 Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $804. Assume that a customer purchases an oven with both installation and maintenance services for $1,080. Indicate the amount of revenues that should be allocated to the oven, the installation, and to the maintenance contract. (Round answers to 2 decimal places, e.g. 1,525.25.)
Oven: ______________
Installation: _________
Maintenance: ________
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