Calculate the stand-alone selling price of the installation

Assignment Help Accounting Basics
Reference no: EM132803456

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 $1,750 and sells the remote separately for $100, and offers the entire package for $1,900. VP does not sell the installation service separately. VP is aware that other similar vendors charge $150 for the installation service. VP also estimates that it incurs approximately $100 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales.

Required:

Problem 1: Calculate the stand-alone selling price of the installation service.

Reference no: EM132803456

Questions Cloud

What the amount of interest income that should be recognized : Boggan sold property to Roberts, What the amount of interest income that should be recognized by Boggan in 2022, using the effective-interest method is
What is latrez expected income before taxes : What is LaTrez's expected income before taxes from these transactions in 2024? LaTrez manufactures and sells direct to consumer expresso machines
What is the simple rate of return on new bottling machine : What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.)
Prepare journal entries to record each of the transactions : Prepare journal entries to record each of these transactions for 2016. Prepare a statement of retained earnings for the year ended December 31, 2016.
Calculate the stand-alone selling price of the installation : Calculate the stand-alone selling price of the installation service. Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV
How might avoid the large discrepancy in the future : As a manager, how might you avoid this large discrepancy in the future? Would a change in inventory systems benefit the company?
What the common stockholders receive dividends of : Assuming that $500,000 will be distributed as a dividend in the current year, what the common stockholders receive dividends of?
How much interest will save on the loan : How much interest (in $) will you save on this loan if you make the partial payment and don't purchase the additional serving supplies?
Does emily have any rights to claim her back pay : What is Lion Tree's liability if he terminates both these contracts? Advise him, citing legal basis in support of your advice. (Maximum 650 words)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entry to record the retirement of bond

Hulse Corporation retires its $800,000 face value bonds at 105 when the carrying value of the bonds. Prepare the journal entry to record the retirement of bond

  Record the transactions of fashion park in a general

Prepare and Record the transactions of Fashion Park in a general journal. Fashion Park must charge 6 percent sales tax on all sales.

  How much cash after taxes would Andrea receive

How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation

  The standard cost card for a product shows that the product

the standard cost card for a product shows that the product should use 4 kilograms of material b per finished unit and

  Create a tax plan for the future redemption

Create a tax plan for the future redemption of the client's stock owned in the construction company that will not be taxed according to Section 301 of the IRC.

  Calculate the unit cost

Calculate the unit cost for each quarter and for the year using the following costs:

  What is the year two depreciation amount

What is the year 2 depreciation amount? Using the double-declining balance method, how much is the 2019 depreciation expense?

  The group product manager for ointments at american

the group product manager for ointments at american therapeutic corporation was reviewing price and promotion

  Which of the following is not an objective of financial

which of the following is not an objective of financial reporting described in fasb concepts statement no. 1? to

  The statement of shareholders equity from cisco systems

1.The following is the Statement of Shareholders Equity from Cisco Systems 2011 annual report.

  Camera shop ince started the year with total assets 80000

camera shop ince. started the year with total assets 80000 and total liabilities of 40000. during the year the business

  Sanchez corporation is considering three long-term capital

sanchez corporation is considering three long-term capital investment proposals. relevant data on each project are as

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd