Electro Corp sells a refrigerator and a freezer as a single package for $1130.Other data are in the chart below.

Using the stand-alone method with selling price as the weight for revenue allocation,what amount will be allocated to the refrigerator? (Do not round any intermediary calculations. )

Question

Electro Corp sells a refrigerator and a freezer as a single package for $1130.Other data are in the chart below.

Using the stand-alone method with selling price as the weight for revenue allocation,what amount will be allocated to the refrigerator? (Do not round any intermediary calculations. )

Quizplus · Accepted Answer

Amount allocated to Refrigerator = $840 / ($840 + $490)× $1130 = $713.68

Electro Corp Sells a Refrigerator and a Freezer as a Single