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Entity A sells cutting machines, and also offers installation and technical support services. The stand-alone selling prices of each product

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Entity A sells cutting machines, and also offers installation and technical support services.  The stand-alone selling prices of each product are shown below.

  • The sale price of a cutting machine           $80,000
  • Installation $20,000
  • One year’s service                                     $100,000

Entity B bought a cutting machine on 1 May 2019 and was charged a reduced price of $126,000.

Entity A only reduces its price when customers purchase a package of products together.


REQUIRED:

Measure the revenue earned from Entity B for the year ended 31 December 2019.

Expert Answer:

Answer rating: 100% (QA)

The Revenue earned from Entity B is calculated as follows Total Revenue withou View the full answer


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Related Book For  answer-question
Introduction to Business Statistics

Introduction to Business Statistics

ISBN: 978-1111524081

7th edition

Authors: Ronald M. Weiers

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Posted Date: May 14, 2020 05:42:39
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