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The Carla Vista Store is an experienced home appliance dealer. Carla Vista Store also offers a number of services along with the household appliances it

The Carla Vista Store is an experienced home appliance dealer. Carla Vista Store also offers a number of services along with the household appliances it sells. Assume that Carla Vista Store sells dishwashers on a standalone basis. Carla Vista Store also sells installation services and maintenance services for dishwashers. However, Carla Vista Store does not offer installation or maintenance services to customers who purchase dishwashers from other vendors. Pricing for dishwashers are as follows: Dishwasher $1,330 Dishwasher with installation service 1,540 Dishwasher with maintenance services 1,680 Dishwasher with installation and maintenance services 1,720 In each instance where maintenance services are provided, the maintenance service is separately priced within the arrangement at $280. Additionally, the incremental amount charged by Carla Vista Store for installation approximates the amount charged by independent third parties. Dishwashers are sold subject to a general right of return. If a customer purchases a dishwasher with installation and/or maintenance services, in the event Carla Vista Store does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $1400. Assume that a customer purchases a dishwasher with both installation and maintenance services for $1,720. Based on its experience, Carla Vista Store 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. Indicate the amount of revenue that should be allocated to the dishwasher, the installation, and to the maintenance contract.

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