Answer:
$5312 are allocated for the equipment sale while $1328 are allocated for the training and repair services.
Explanation:
As complete data of the question is not given in here, on search a similar question is found which is attached in the attachments.
Now from the data
Price of equipment=P_E = $6,640
Price of Training and Repair services =P_TR= $1,660
Total Combined Price P_CT=P_E+P_TR=$6640+$1660=$8300
As given the training and repair is sold for free so the price
Total Selling Price of Equipment and Repair Services =P_ST= $6,640+0*$1,660
Total Selling Price of Equipment and Repair Services =P_ST= $6,640
Now the revenue allocation is given as
Revenue allocation for the equipment sale is given as
[tex]R_E=\frac{P_{ST}\times P_E}{P_CT}\\R_E=\frac{6640\times 6640}{8300}\\R_E=\$ 5312[/tex]
So $5312 are allocated for the equipment sale.
Revenue allocation for the training and repair services is given as
[tex]R_{TR}=\frac{P_{ST}\times P_{TR}}{P_{CT}}\\R_{TR}=\frac{6640\times 1660}{8300}\\R_{TR}=\$ 1328[/tex]
$1328 are allocated for the training and repair services.
Answer:The revenue earned from the sale of equipment is $5,312, the revenue earned from training and repair service is $1,328
Explanation:
The question is not complete here is the missing part of the question
Required information
( The following information applies to the question display below )
Hospital Equipment Company (HEC ) acquired several FMRI machine for its Inventory at a cost of $3,200 per machine HEC usually sells these machine to hospital at a price of $6,640. HEC also separately sells 12 months of training and repair services for FMRI machine for $1,660, HEC is paid $6,640 cash on November 30 for the sale of FMRI machine delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair service.
Here is the solution
Price of equipment $6,640
Price of training and repair $1,660
Total price of equipment and training and repair $6,640 + $1,660 = $8,300
To calculate the revenue earned from the sale of equipment
= Price of equipment × cash receipt from the sale / Total price of equipment and training and repair
= 6,640 × 6,640 / 8,300
= 44,089,600 / 8,300
= 5,312
To calculatethe revenue earned from the training and repair service
=Price of equipment × Price of training and repair service / Total price of equipment and training and repair service
= 6,640 × 1,660/ 8,300
= 11,022,400 / 8,300
= 1,328
