Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.

Using the stand-alone method with physical units as the weight for revenue allocation, what amount will be allocated to the refrigerator?
A) $510
B) $180
C) $640
D) $820

Question

Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.

Using the stand-alone method with physical units as the weight for revenue allocation, what amount will be allocated to the refrigerator?
A) $510 
B) $180 
C) $640 
D) $820

Quizplus · Accepted Answer

Amount allocated to Refrigerator = (1/2) × $1020 = $510

Electro Corp Sells a Refrigerator and a Freezer as a Single