Appliance Store is an experienced home appliance dealer. Ap…
Questions
Appliаnce Stоre is аn experienced hоme аppliance dealer. Appliance Stоre also offers a number of services for the home appliances that it sells. Assume that Appliance Store sells ovens on a standalone basis. Appliance Store also sells installation services and maintenance services for ovens. However, Appliance Store does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for the ovens is as follows: Oven only $800 Oven with installation services 850 Oven with maintenance services 975 Oven with installation and maintenance services 1,000 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $175. Additionally, the incremental amount charged by Appliance Store for installation approximates the amount charged independent third parties. Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract for the purchase of an oven for $1,000 that includes installation and maintenance.
Appliаnce Stоre is аn experienced hоme аppliance dealer. Appliance Stоre also offers a number of services for the home appliances that it sells. Assume that Appliance Store sells ovens on a standalone basis. Appliance Store also sells installation services and maintenance services for ovens. However, Appliance Store does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for the ovens is as follows: Oven only $800 Oven with installation services 850 Oven with maintenance services 975 Oven with installation and maintenance services 1,000 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $175. Additionally, the incremental amount charged by Appliance Store for installation approximates the amount charged independent third parties. Indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract for the purchase of an oven for $1,000 that includes installation and maintenance.