CompuValue Center sells a full assortment of computer parts, including motherboards, video cards, and cables, and also offers complementary computer assembly services. CompuValue estimates that it incurs $50 in labor and materials on average to complete one assembly order, with an average of 75% profit based on cost.
Required:
Assuming that computer parts and assembly service are separate performance obligations, estimate the stand-alone selling price of the assembly service based on the expected cost plus margin approach.

Question

Quizplus · Accepted Answer

The Answer of CompuValue Center sells a full assortment of computer parts, including motherboards, video cards, and cables, and also offers complementary computer assembly services. CompuValue estimates that it incurs $50 in labor and materials on average to complete one assembly order, with an average of 75% profit based on cost.
Required:
Assuming that computer parts and assembly service are separate performance obligations, estimate the stand-alone selling price of the assembly service based on the expected cost plus margin approach.

CompuValue Center Sells a Full Assortment of Computer Parts, Including