Estimate the stand-alone selling price

Assignment Help Accounting Basics
Reference no: EM132246604

Question - Minor Music sells a product that contains two performance obligations: the Maestro keyboard and the Maestro teaching software. The Maestro keyboard has a stand-alone selling price of $350. Minor Music sells both the Maestro keyboard and teaching software as a package deal for $500. The Maestro teaching software is not sold separately. Minor Music is aware that teaching software can be purchaed from other vendors for $200. Minor Music prices are generally 10% lower than what is charged by those vendors. Minor Music estimates that it incurs costs of approximately $100 per copy of the teaching software and usually charges 55% above cost on similiar products.

a) Estimate the stand-alone selling price of the software using the residual approach.

b) Estimate the stand-alone selling price of the software using the adjusted market assessment approach.

c) Estimate the stand-alone selling price of the software using the expected cost plus margin approach.

Reference no: EM132246604

Questions Cloud

What benefit will customers expect : How will you make money based on your costs and desired profits? Will you have different prices for different customers?
Prepare the journal entries to record the sale : Prepare the journal entries to record the sale and subsequent payments assuming Maxiant Corporation uses the gross method of accounting for receivables
Describe the use of biometric technologies : Compare the arguments for and against the use of biometric technologies in tracking down criminals to arguments discussed in Chapter 5.
What is quality and its importance to project success : What is quality and its importance to project success.
Estimate the stand-alone selling price : Estimate the stand-alone selling price of the software using the adjusted market assessment approach
Produce a personal budget based on the results : CONSUMER ARITHMETIC - MONEY, MEASUREMENT and RELATIONS - Produce a personal budget based on the results of your mathematical research
Discuss how whistleblowing could affect a companys future : What moral obligation, beyond the scope of your job, do you have to your employer? Explain your answer.
Determining the important work processes : If you have important work processes, how can you use a knowledge management system to capture this data?
How much revenue should jasper recognize : Assume Jasper estimates variable consideration as the expected value. How much revenue should Jasper recognize on this contract in 2018

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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