Testing Computer Company sells computers and also a 12-month full service on-line package. Prices are as follows:

Price of Computer Alone: $600.00

Price of Service Package Alone: 400.00

Price of Package With Both: $750.00

The company sold 200 packages in October, 2020 for a total of $150,000.

• Allocate the $750 price of the package between the two items.
• Allocate the total sales of $150,000 between the product and the service.
• Calculate the total revenue to be recognized in 2020 (year end 12-31-20).

Questions
How much of the $750 price should be allocated to the computer?
How much of the $750 price should be allocated to the service?
How much of the $150,000 should be allocated to the sale of the product?
How much of the $150,000 should be allocated to the service?
What is the total revenue to be recognized in 2020?