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 $2,090 and sells the remote separately for $270, and offers the entire package for $2,580.
VP does not sell the installation service separately.
VP is aware that other similar vendors charge $320 for the installation service.
VP also estimates that it incurs approximately $270 of compensation and other costs for VP staff to provide the installation service.
VP typically charges 50% above cost on similar sales.
Required:
Calculate the stand-alone selling price of the installation service using each of the following approaches.
1. Price Adjusted market assessment
2. Expected cost plus margin
3. Residual
Answers: 2
Business, 21.06.2019 21:30
Gary becker's controversial the economics of discrimination concludes that price discrimination has no effect on final profits. price discrimination benefits monopolies. labor discrimination in hiring results in more efficient allocations of production. discrimination in hiring practices has no effect on final profits. labor discrimination harms firms that practice it due to increased labor costs. price discrimination harms monopolies, which refutes over two centuries of economic theory.
Answers: 3
Business, 22.06.2019 13:40
After much consideration, you have chosen cancun over ft. lauderdale as your spring break destination this year. however, spring break is still months away, and you may reverse this decision. which of the following events would prompt you to reverse this decision? a. the marginal cost of going to cancun decreases.b. the marginal cost of going to ft. lauderdale decreases.c. the marginal benefit of going to cancun increases.d. the marginal benefit of going to ft. lauderdale decreases.
Answers: 2
Business, 22.06.2019 20:20
This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.
Answers: 2
Business, 23.06.2019 02:00
Heyak believed that the economy could be hard to measure because
Answers: 2
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remot...
Mathematics, 08.02.2021 01:10
English, 08.02.2021 01:10
English, 08.02.2021 01:10
Advanced Placement (AP), 08.02.2021 01:10
Mathematics, 08.02.2021 01:10
Mathematics, 08.02.2021 01:10
Advanced Placement (AP), 08.02.2021 01:10
Computers and Technology, 08.02.2021 01:10