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.)
A) $565.00
B) $416.32
C) $713.68
D) $840.00

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.)
A) $565.00 
B) $416.32 
C) $713.68 
D) $840.00

Quizplus · Accepted Answer

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

Electro Corp Sells a Refrigerator and a Freezer as a Single