Sonya, Inc. (SONI) sells o big screen TV package consisting of a 60-inch plasma TV, a univerad remote, and onsite installation by SONI staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment 'system. SON concludes that the TV, remote, and installation service are separate performance obligalions. Sonya, Inc. (SONI) sells the 60-inch TV separately for P17,500'and sells the remote separately for P1,000,ond offers the entire package for P19,000. SONI does not sell the installation service separately. SONI is oware that other similar vendors charge P1,500 for the installation service. SONI also estimates that it incurs approximafely P1,000 of compensation and other cosis for SONI staff to provide the installation service. SONI typically charges 40% above cost on similar sales. 47. Estimate the stand-alone selling price of the installation service using the adjusted market assessment approach? a. P 0 b. P1,500

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
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Sonya, Inc. (SONI) sells o big screen TV package consisting of a 60-inch plasma TV, a univerad remote, and

onsite installation by SONI staff. The installation includes programming the remote to have the TV

interface with other parts of the customer's home entertainment 'system. SON concludes that the TV,

remote, and installation service are separate performance obligalions. Sonya, Inc. (SONI) sells the 60-inch

TV separately for P17,500'and sells the remote separately for P1,000,ond offers the entire package for

P19,000. SONI does not sell the installation service separately. SONI is oware that other similar vendors

charge P1,500 for the installation service. SONI also estimates that it incurs approximafely P1,000 of

compensation and other cosis for SONI staff to provide the installation service. SONI typically charges 40%

above cost on similar sales.

47. Estimate the stand-alone selling price of the installation service using the adjusted market assessment approach?

a. P 0

b. P1,500

 

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