Sonya, Inc. (SONI) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and onsite installation by SONI staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. SONI concludes that the TV, remote, and installation service are separate performance obligations. SONI sells the 60-inch TV separately for P17,500, sells the remote separately for P1,000 and offers the entire package P19,000. SONI does not sell the installation service separately. SONI is aware that other similar vendors charge P1,500 for the installation service. SONI also estimated that it incurs approximately P1,000 of compensation and other costs for SONI staff to provide the installation service. SONI typically charges 40% above cost on similar sales. Estimate the stand-alone selling price of the installation service using the adjusted market assessment approach?
Sonya, Inc. (SONI) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote,
and onsite installation by SONI staff. The installation includes programming the remote to have the
TV interface with other parts of the customer’s home entertainment system. SONI concludes that the
TV, remote, and installation service are separate performance obligations. SONI sells the 60-inch TV
separately for P17,500, sells the remote separately for P1,000 and offers the entire package P19,000.
SONI does not sell the installation service separately. SONI is aware that other similar vendors charge
P1,500 for the installation service. SONI also estimated that it incurs approximately P1,000 of
compensation and other costs for SONI staff to provide the installation service. SONI typically
charges 40% above cost on similar sales.
Estimate the stand-alone selling price of the installation service using the adjusted market
assessment approach?
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