Beaumont Company Enters into a Contract to Provide a High

question 234

Essay

Beaumont Company enters into a contract to provide a high quality diving-certification preparation package, including goggles, snorkels, air tanks, fins, a wetsuit, and 5 private lessons to get ready for diving certifications. The entire package sells for $2,500.
-Other competing sellers in the same region charge an average of $250 for a set of goggles and $750 for the lessons, if sold separately. Beaumont Company usually sells at a 5% discount compared to other shops, since it is a bit farther away from the ocean.
Required:
What would be Beaumont's stand-alone selling price of the goggles and the lessons, based on adjusted market assessment approach?

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Definitions:

ABA Number

A fraction appearing in the upper-right corner of all printed checks that identifies the geographic area and specific bank on which the check is drawn.

Pay to the Order

A financial instruction found on a check, directing the bank to pay a specified amount to the individual or entity named.

Certified Check

A type of check for which the issuing bank guarantees the availability of funds by verifying the drawer's signature and setting aside the check amount from the drawer's account.

Statement of Income and Expense

A financial document that summarizes revenue and expenses over a specific period, showing net profit or loss.