The Center is an experienced home appliance dealer. The Center also offers a number of services together with the home appliances that it sells. Assume that The Center sells ovens on a standalone basis. The Center also sells installation services and maintenance services for ovens. However, The Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows.
Oven only 803
Oven with installation service 910
Oven with maintenance services 976
Oven with installation and maintenance services 1,040
In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $173. Additionally, the incremental amount charged by The 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 The Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $803.
Assume that a customer purchases an oven with both installation and maintenance services for $1,040.
Indicate the amount of revenues that should be allocated to the oven, the installation, and to the maintenance contract.
Answers: 3
Another question on Business
Business, 21.06.2019 21:00
You have just been hired as a financial analyst for barrington industries. unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. so, your first job will be to recreate the firm's cash flow statement for the year just ended. the firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. it earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. you have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. what was the firm's end- of-year cash balance? recreate the firm's cash flow statement to arrive at your answer
Answers: 1
Business, 23.06.2019 08:30
What effect, considered related to the secondary effect of advertisement, occurs as an advertisement begins to lose its impact when it gets old? the makes the advertisement lose its impact after it gets old.
Answers: 1
Business, 23.06.2019 10:30
According to the graph, how much did individuals making $20,000 to $50,000 a year pay in income taxes? according to the graph, how much revenue did the government receive from individuals earning $200,000 and above?
Answers: 2
You know the right answer?
The Center is an experienced home appliance dealer. The Center also offers a number of services toge...
Questions
Mathematics, 31.01.2020 06:03
Mathematics, 31.01.2020 06:03
Mathematics, 31.01.2020 06:03
Mathematics, 31.01.2020 06:03
Mathematics, 31.01.2020 06:03
History, 31.01.2020 06:03
History, 31.01.2020 06:03
History, 31.01.2020 06:03
