Question: Please explain Help Save&Exit Submi heck my work Video Planet ('VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal
Please explain Help Save&Exit Submi heck my work 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 $1,850 and sells the remote separately for $150, and offers the enbre package for $2100. VP does not sell the installation service separately. VP is aware that other similar vendors charge $200 for the installation service. VP also estimates that it incurs approximately $150 of compensation and other costs for VP staff to dprovide the installation service. VP typically charges 50% above cost on similar sales Required: 1. to 3. Calculate the stand-alone price of the installetion service using each of the following approaches Expectod cost plus margin
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
