Answer the following questions using the information below:
Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.
$$\begin{array} { | l | c | c | c | }
\hline & \text { Refrigerator } & \text { Full-size Freezer } & \text { Packaged Price } \
\hline \text { Selling price } & \$ 800 & \$ 400 & \$ 1,000 \
\hline \text { Manufactuing cost per unit } & \$ 600 & \$ 200 & \
\hline \text { Stand-alone product revenues } & \$ 1,200,000 & \$ 800,000 & \
\hline
\end{array}$$
-Using the stand-alone method with physical units as the weight for revenue allocation,what amount will be allocated to the refrigerator?
A) $500
B) $20
C) $600
D) $825

Question

Answer the following questions using the information below:
Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.
 $$\begin{array} { | l | c | c | c | } 
\hline & \text { Refrigerator } & \text { Full-size Freezer } & \text { Packaged Price } \
\hline \text { Selling price } & \$ 800 & \$ 400 & \$ 1,000 \
\hline \text { Manufactuing cost per unit } & \$ 600 & \$ 200 & \
\hline \text { Stand-alone product revenues } & \$ 1,200,000 & \$ 800,000 & \
\hline
\end{array}$$
-Using the stand-alone method with physical units as the weight for revenue allocation,what amount will be allocated to the refrigerator?
A) $500
B) $20
C) $600
D) $825

Quizplus · Accepted Answer

The stand-alone method with physical units allocates the package price based on the number of units. Since both the refrigerator and freezer are sold as one unit each in the package, the $1,000 is split equally, allocating $500 to the refrigerator.

Answer the Following Questions Using the Information Below: Electro Corp

Answer the Following Questions Using the Information Below:
Electro Corp