Hopner Products Enters into a Contract with Tulles to Sell

question 6

Multiple Choice

Hopner Products enters into a contract with Tulles to sell three different products. The total transaction price is $370,000. Each of the products is a separate performance obligation. Based on the information presented in the table, what is the allocated transaction price of product Z using the expected-cost-plus-a-profit margin approach? (Round intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest whole number.) $$\begin{array} { | c | c | c | c | } \hline \text { Product } & \text { Standalone Price } & \text { Market Price } & \text { Forecasted Cost } \\\hline \mathrm { X } & \$ 150,000 & \$ 130,000 & \$ 100,000 \\\hline \mathrm { Y } & \$ 110,000 & \$ 160,000 & \$ 85,000 \\\hline \mathrm { Z } & \text { Not Available } & \$ 100,000 & \$ 140,000 \\\hline\end{array}$$

• A) $159,390
• B) $94,868
• C) $123,333
• D) $185,000

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Definitions:

Slave Traders

Individuals or companies involved in the buying and selling of human beings for the purpose of forced labor, a practice prominent in historical global trade networks.

Silversmiths

Craftspeople specialized in working with silver to create items such as jewelry, utensils, and decorative objects, practicing a blend of artistic design and metalworking skills.

Walking Purchase

An infamous 1737 purchase of Indian land in which Pennsylvanian colonists tricked the Lenni Lanape Indians. The Lanape agreed to cede land equivalent to the distance a man could walk in thirty-six hours, but the colonists marked out an area using a team of runners.

British Imperial System

A system of colonial rule and economic dominance exercised by Britain over its overseas territories from the 16th to the 20th century.