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video planet (CP) sells a big screen TV package consisting of a 60 inch plasma TV, a universal remote, and on-site installation by VP staff.
video planet (CP) sells a big screen TV package consisting of a 60 inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customers home entertainment system. VP concludes that the TV, remote, and installation service or separate performance obligations. The piece sells the 60 inch TV separately for $1890, sells the remotes separately for $170, and offers the entire package for $2180. The P does not sell the installation service separately. VP is aware that other similar vendors charge $220 for the installation service separately. VP also estimates that it encourages approximately $170 of compensation and other costs for VP staff to provide the installation service. VP typically charges 30% above cost on similar sales.
Video Planet (VP) sells a big screen TV package consisting of a 60 -inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. VP concludes that the TV. remote, and installation service are separate perfotmance obligations. VP sells the 60-inch TV separately for $1,890, sells the remote separately for $170, and offers the entire package for \$2:180. VP does not sell the instailation service separately. VP is aware that other similar vendors charge $220 for the installation service. VP also estimates that it incurs approximately $170 of compensation and other costs for VP staff to provide the installation service. VP typically charges 30% above cost on similar sales. Required: 1. to 3. Estimate the stand-alone selling price of the installation service using each of the following approaches 1. to 3. Estimate the stand alone selling price of the instilation service using each of the following approaches.
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