Electro Corp Sells a Refrigerator and a Freezer as a Single

question 134

Multiple Choice

Electro Corp sells a refrigerator and a freezer as a single package for $1,000.Other data are in the chart below.

Using the stand-alone method with physical units as the weight for revenue allocation,what amount will be allocated to the refrigerator?

• A)$510
• B)$180
• C)$640
• D)$820

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another when the latter has relied on that promise to their detriment.

Detrimental Reliance

A legal principle where a party suffers a loss due to their reliance on a promise or agreement that is not fulfilled by the other party.

Unenforceable Contract

A contract that is not legally binding and cannot be enforced by law due to certain deficiencies or lack of key requirements.

Adequacy of Consideration

A legal principle that examines whether the value exchanged in a contract is fair and reasonable to all parties involved.