Electro Corp sells a refrigerator and a freezer as a single package for $1120. Other data are in the chart below.

Using the stand-alone method with stand-alone product revenues as the weight for revenue allocation, what amount will be allocated to the refrigerator? (Do not round any intermediary calculations.)
A) $503.03
B) $647.58
C) $472.42
D) $560.00

Question

Electro Corp sells a refrigerator and a freezer as a single package for $1120. Other data are in the chart below.

Using the stand-alone method with stand-alone product revenues as the weight for revenue allocation, what amount will be allocated to the refrigerator? (Do not round any intermediary calculations.)
A) $503.03 
B) $647.58 
C) $472.42 
D) $560.00

Quizplus · Accepted Answer

Amount allocated to Refrigerator = $1,220,000 / ($1,220,000 + $890,000) × $1120 = $647.58

Electro Corp Sells a Refrigerator and a Freezer as a Single