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Tpy6a [65]
3 years ago
10

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 $1,810 and sells the remote separately for $130, and offers the entire package for $2,020. VP does not sell the installation service separately. VP is aware that other similar vendors charge $180 for the installation service. VP also estimates that it incurs approximately $130 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales.
Required:
Calculate the stand-alone price of the installation service using each of the following approaches.
1. adjusted market assessment
2. expected cost plus margin
3. residual
Business
1 answer:
skelet666 [1.2K]3 years ago
8 0

Answer:

1. The stand-alone price for installation service using adjusted market assessment is $180

2. The stand-alone price for installation service using expected cost plus margin is $182

3. The stand-alone price for installation service using residual is $182

Explanation:

1. According to the given data the market price at which similar vendors charge installation service should be taken as the stand-alone price which is $180

Therefore, The stand-alone price for installation service using adjusted market assessment is $180

2. The stand-alone price of the installation service using expected cost plus margin would be a follows:

Stan−alone price=Estimated Cost+Estimated margin

=$130+(40%×$130)

=$182

Therefore, The stand-alone price for installation service using expected cost plus margin is $182

3. The stand-alone price of the installation service using residual would be a follows:

Stand−alone price=Total transaction price−Stand−alone price for T.V−

−Stand−alone price for compensation and other costs

=$2,020−$1,810−$130

=$80

Therefore, The stand-alone price for installation service using residual is $182

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B I think but I dont want to get this wrong for you so make sure with someone else to

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2 years ago
Economics students often confuse (a) diminishing returns related to the variable factors of production and (b) diseconomies of s
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Answer:

Marginal Product:

The marginal product of an input that is being used in the production process of a good or services is the extra output generated by using the extra unit of that input. Alternatively, the marginal product is the output generated by the last unit of the input added only.

Explanation:

  1. Diminishing marginal returns means that as you adds more units of that input, the marginal product declines. That is, each additional of extra unit of the input results in decreased and less additional output. For example, the marginal product of labor usually decreases as the amount of labor increases because there is a fixed amount of capital used in the short run, so when labor increases, the capital per unit of labor decreases, which results in each and every extra working being less productive than the previous one.
  2. Dis-economies of scale, whereas, results in an increase in the average cost of production as the number of units increases. That's why diminishing marginal returns refers to production, and dis-economies of scale refers to the average cost. Dis-economies of scale often happened because the production levels get high, there is less management on each employee, resulting in each employee having less motivation to work as hard due to lack of production making it hard to notice that change.So, it may results in the average worker's productivity decreasing, causing the per-unit cost to rise.
7 0
3 years ago
Suppose the price of apples goes up from $20 to $22 a box. In direct response, Goldsboro Farms supplies 1,200 boxes of apples in
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Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.

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Rashid [163]
Answer 2 is the best choice
3 0
3 years ago
Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inve
Ivan

Answer:

<u>Date                                      Purchases                    Sales        </u>

May 1                                1,550 units at $44

May 10                                720 units at $45

May 12                                                                    1,200 units

COGS                                                                  (720 x $45 = $32,400)

COGS                                                                  (480 x $44 = $21,120)

TOTAL COGS FOR MAY 12 SALE                       = $53,520

Inventory after sale        1,070 units at $44

May 20                             1,200 units at $48

May 14                                                                      830 units

COGS                                                                  (830 x $48 = $39,840)

TOTAL COGS FOR MAY 14 SALE                       = $39,840

Inventory after sale         1,070 units at $44

                                          370 units at $48

May 31                                                                    1,000 units

COGS                                                                  (370 x $48 = $17,760)

COGS                                                                  (630 x $44 = $27,720)

TOTAL COGS FOR MAY 12 SALE                       = $45,480

Inventory after sale        440 units at $44

Under LIFO (last in, first out), the cost of goods sold is determined using the price of the last units purchased, which means that the most recent (or updated) price is used to calculate COGS.

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3 years ago
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