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Use the following information to answer questions 33 – 34: JNR Co. signs a contract to...

Use the following information to answer questions 33 – 34: JNR Co. signs a contract to provide three different products to a customer for a total transaction price of $750,000. Each product represents a separate performance obligation. JNR Co. only sells two of the three products on an individual basis so it must estimate the standalone selling price for the third product. JNR Co.’s cost accountants are able to forecast the cost of each product. JNR Co. has also scanned its competitors’ prices to determine their prices. The information about these three products is provided in the following table:

Product

Standalone

Selling Price

Forecasted Cost

Market Competition Price

A

$250,000

$125,000

$240,000

B

$450,000

$200,000

$365,000

C

Not Available

$50,000

$100,000

Total

$375,000

$705,000


What is the standalone selling price of product C using the expected cost plus margin approach?

Group of answer choices

$100,000

$50,000

$106,383

$25,000

None of the above.

What is the standalone selling price of product C using the market assessment approach?

Group of answer choices

None of the above.

$25,000

$50,000

$100,000

$106,383

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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