Wildhorse Appliance Center is an experienced home appliance dealer. Wildhorse Appliance Center also offers a number of services for the home appliances that it sells. Assume that Wildhorse Appliance Center sells ovens on a standalone basis. Wildhorse Appliance Center also sells installation services and maintenance services for ovens. However, Wildhorse 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 $780 Oven with installation service 860 Oven with maintenance services 970 Oven with installation and maintenance services 1,000 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $190. Additionally, the incremental amount charged by Wildhorse 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 Wildhorse Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $780. Assume that a customer purchases an oven with both installation and maintenance services for $1,000.

Wildhorse Appliance Center is an experienced home appliance dealer. Wildhorse Appliance Center also offers a number of services for the home appliances that it sells. Assume that Wildhorse Appliance Center sells ovens on a standalone basis. Wildhorse Appliance Center also sells installation services and maintenance services for ovens. However, Wildhorse 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 Oven with installation service Oven with maintenance services Oven with installation and maintenance services $780 860 970 1,000 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $190. Additionally, the incremental amount charged by Wildhorse 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 Wildhorse Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $780. Assume that a customer purchases an oven with both installation and maintenance services for $1,000. (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract. (Do not round intermediate calculations. Round final answers to 2 decimal places.) Oven Installation Maintenance Click if you would like to Show Work for this question: Open Show Work