Question

Minarski Electronics sells computers and provides hardware maintenance services. On April 1st, Minarski sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $984 and the one-year unlimited maintenance/repair service costs $216. How much revenue does Minarski Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly

Answer 1

Answer:

$835

Explanation:

Calculation for the amount of revenue that Minarski Electronics recognize

First step is to find the Total cost amount if sold separately

Total cost if sold separately = 984+ 216

Total cost if sold separately= 1200

Second step is to find the Percentage of computer

Percentage of Computer = 984/1,200

Percentage of Computer = 0.82

Percentage of Computer =82%

Third step is to find the Percentage of maintenance

Percentage of maintenance = 216/1,200

Percentage of maintenance=0.18*100

Percentage of maintenance=18%

Next step is to calculate for the Revenue to be recognized for both computer and Maintenance service costs

Computer Revenue= 1,000 * 82%

Computer Revenue= 820

Maintenance service costs revenue =(18% * 1,000)/12

Maintenance service costs revenue =180/12

Maintenance service costs revenue =15

Last step is to find the Total amount to be recognized

Total amount to be recognized = 820 + 15

Total amount to be recognized=$835

Therefore the amount of revenue that Minarski Electronics will recognize is $835