Electro Corp Sells a Refrigerator and a Freezer as a Single

question 79

Multiple Choice

Electro Corp sells a refrigerator and a freezer as a single package for $1150.Other data are in the chart below.

Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation,what amount will be allocated to the refrigerator? (Do not round any intermediary calculations. )

• A)$304.82
• B)$575.00
• C)$661.45
• D)$845.18

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Definitions:

Annuity

A financial product that provides a series of payments at fixed intervals, often used for retirement savings or income generation.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them back to the present day, used in capital budgeting to assess the profitability of an investment.

Compound Interest

Interest that is computed not only on the original amount deposited or borrowed but also on the interest that has been added to the principal over past periods.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, such as purchasing long-term assets.