Question

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Minarski Electronics sells computers and provides hardware maintenance services. On April 1st , Minarski sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Minarski Electronics recognize for the month ended April 30 th assuming that revenue is accrued monthly? Multiple Choice $30 $1,000 $725 $870

Answer 1

Minarski Electronics recognizes a revenue of $1,000 for the month ended April 30th.

Step-by-step explanation:

To calculate the revenue recognized by Minarski Electronics for the month ended April 30th, we need to consider the bundle deal. The bundle price of $1,000 includes the computer and the one-year unlimited maintenance/repair service. If sold separately, the computer costs $840 and the one-year service costs $360. Therefore, the revenue recognized for the month is $1,000.

Answer 2

The revenue that Minarski Electronics recognizes for the month ended April 30th is $1,000.

Step-by-step explanation:

The revenue that Minarski Electronics recognizes for the month ended April 30th can be calculated by considering the bundle price and the individual prices of the computer and the maintenance/repair service.

If the bundle was sold for $1,000 and the computer alone costs $840, then the revenue from the maintenance/repair service would be $1,000 - $840 = $160. This means that Minarski Electronics would recognize $840 + $160 = $1,000 which will be recognized as the revenue for the month of April ended 30th April.

Therefore, the correct answer from the options provided to us is $1,000.