MaxSystems Inc. sells computer hardware to end consumers. Its most popular model, the CX30 is sold as a bundle, which includes three hardware products: a personal computer (PC tower), 23 inch monitor, and a color laser printer. Each of these products is made in a separate manufacturing division of MaxSystems and can be purchased individually, as well as in a bundle. The ind. Selling prices and per unit costs are as follows:
Computer Component Ind. Selling Price per Unit Cost per Unit
PC Tower $1040 140
Monitor 260 84
Color Laser Printer 700 176
Computer Bundle Purchase Price 1200
Part 1
Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand alone method based on the ind. selling price per unit
Part 2
Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand alone method based on cost per unit.
Part 3
Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand alone method based on physical units (that is, # of individual units of product sold per bundle)