Media Mars ("MM") sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and onsite installation by MM staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. MM concludes that the TV, remote, and installation service are separate performance obligations. MM sells the 60-inch TV separately for $3,500 and sells the remote separately for $200, and offers the entire package for $3,800. MM does not sell the installation service separately. MM is aware that other similar vendors charge $300 for the installation service. MM also estimates that it incurs approximately $200 of compensation and other costs for MM staff to provide the installation service. MM typically charges 40% above cost on similar sales. Required: 1. 2. 3. Estimate the stand-alone selling price of the installation service using the adjusted market assessment approach. Estimate the stand-alone selling price of the installation service using the expected cost plus margin approach. Estimate the stand-alone selling price of the installation service using the residual approach.

Media Mars ("MM") sells a big screen TV package consisting of a 60-inch plasma TV, a universal remore, and onsite installation by MM staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. MM concludes that the TV. remote, and installation service are separate performance obligations. MM sells the 60 -inch TV separately for $3,500 and sells the remote separately for $200, and offers the entire package for $3,800. MM does not sell the installation service separately. MM is aware that other similar vendors charge $300 for the installation service. MM also estimates that it incurs approximately $200 of compensation and other costs for MM staff to provide the installation service. MM typically charges 40% above cost on similar sales. Required: 1. Estimate the stand-alone selling price of the installation service using the adjusted market assessment approach. 2. Estimate the stand-alone selling price of the installation service using the expected cost plus margin approach. 3. Estimate the stand-alone selling price of the installation service using the residual approach