Question
On January 1, 2016, TrueTech delivers 1,000 Tri-Box Systems to CompStores at a price of $270 per system. The Tri-Box System includes the physical Tri-Box
On January 1, 2016, TrueTech delivers 1,000 Tri-Box Systems to CompStores at a price of $270 per system. The Tri-Box System includes the physical Tri-Box module as well as a one-year subscription to the Tri-Net multiuser platform of internet-based games and other applications. The Tri-Box modules have a stand-alone selling price of $250, but TrueTech does not sell one-year subscriptions separately. Other vendors charge $50 for similar one-year subscriptions to internet games and applications. TrueTech estimates that it incurs approximately $10 of cost by providing one-year subscription to Tri-Net multiuser platform and usually the margin for similar services is 50% above cost.
What is the:
1) Adjusted market assessment approach
2) Expected cost plus margin approach
3) Residual approach
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