Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations.
VP sells the 60-inch TV separately for $2,090 and sells the remote separately for $270, and offers the entire package for $2,580.
VP does not sell the installation service separately.
VP is aware that other similar vendors charge $320 for the installation service.
VP also estimates that it incurs approximately $270 of compensation and other costs for VP staff to provide the installation service.
VP typically charges 50% above cost on similar sales.
Required:
Calculate the stand-alone selling price of the installation service using each of the following approaches.
1. Price Adjusted market assessment
2. Expected cost plus margin
3. Residual

Northern lights electronics just completed plans to distribute its new tablet. the product has several unique features that differentiate it from competitor products. the marketing team plans to begin a roll-out with to only one traditional retailer for the first two months. this strategy will give consumers the perception of the product’s stand-out personality and increase demand. marketing will proceed with for the next four months, where it plans to distribute to three other retailers, as well. for the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. the marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. as the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with as described above. intensive distribution; selective distribution; exclusive distribution exclusive distribution; selective distribution; intensive distribution tertiary level distribution; secondary level distribution; mono-level distribution mono-level distribution; secondary level distribution; tertiary level distribution