Solution-What is the standalone selling price of product c

What is the standalone selling price of product c

Reference no: EM133184363

Question - Reiter Co. signs a contract to provide three different products to a customer for a total transaction price of $750,000. Each product represents a separate performance obligation. Reiter Co. only sells two of the three products on an individual basis so it must estimate the standalone selling price for the third product. Reiter Co.'s cost accountants are able to forecast the cost of each product. Reiter Co. has also scanned its competitors' prices to determine their prices. The information about these three products is provided in the following table:

Product	Standalone Selling Price	Forecasted Cost	Market Competition Price
A	$250,000	$125,000	$240,000
B	$450,000	$200,000	$365,000
C	Not Available	$50,000	$100,000
Total		$375,000	$705,000

Required -

1. What is the standalone selling price of product C using the expected cost plus margin approach?

2. What is the standalone selling price of product C using the market assessment approach?

Reference no: EM133184363

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What is the standalone selling price of product c

Reference no: EM133184363

Reference no: EM133184363

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