Business, 12.03.2020 00:42 raquelqueengucci25

In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $200. Additionally, the incremental amount charged by Buffalo Appliance Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Buffalo Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. Assume that a customer purchases an oven with both installation and maintenance services for $990. (b) Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract

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