Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Video Planet ( VP ) sells a big screen TV package consisting of a 6 0 - inch plasma TV , a universal remote, and

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 performance obligations. VP sells the 60-inch TV separately for $1,435, sells the remote separately for $205, and offers the installation service separately for $410. The entire package sells for $1,950.
Required:
How much revenue would be allocated to the TV, the remote, and the installation service?
Note: Do not round intermediate calculations.
Answer is complete but not entirely correct.
\table[[Item Description,,],[TV,$,1,338
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Employment, Hours, And Earnings 2010 States And Areas

Authors: Sarah E. Baltic

5th Edition

1598884190, 9781598884197

More Books

Students also viewed these Accounting questions