Accorsi & Sons specializes in selling and installing upscale home theater system

Question

Accorsi & Sons specializes in selling and installing upscale home theater systems. On March 1, 2016, Accorsi sold a premium home theater package that includes a projector, set of surround speakers, and high quality leather seats, along with complete installation service, for $33,000. If sold separately, each of these goods and services would have cost $19,000 (projector), $16,000 (speakers), $21,000 (seats), and $6,500 (installation), respectively. Required: How much of the transaction price would be allocated to the projector, the speakers, the leather seats, and the installation service, assuming that each of these four parts of the contract is a separate performance obligation? (Round the percentage values to 2 decimal places.)

Explanation / Answer

Sales value Percentage of total Transaction price allocated Projector 19000 30.40% 10032 Speakers 16000 25.60% 8448 Seats 21000 33.60% 11088 Installation 6500 10.40% 3432 Total 62500

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.