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?

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?

Quizplus · Accepted Answer

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

Electro Corp Sells a Refrigerator and a Freezer as a Single