Question: Could you help please ? Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site

 Could you help please ? Video Planet (VP) sells a big

screen TV package consisting of a 60-inch plasma TV, a universal remote,Could you help please ?

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 $1,870, sells the remote separately for $110, and offers the installation service separately for $220. The entire package sells for $2,100. Required: How much revenue would be allocated to the TV, the remote, and the installation service? (Do not round intermediate calculations.) Item Description Allocated Revenue TV Remote Installation Total revenue $ 0 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 $1,990 and sells the remote separately for $220, and offers the entire package for $2,380. VP does not sell the installation service separately. VP is aware that other similar vendors charge $270 for the installation service. VP also estimates that it incurs approximately $220 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales. Required: 1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches. Stand-Alone Selling Price Adjusted market assessment Expected cost plus margin Residual

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