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Selling Price per unit # of Screens Unit Price Total Price Iphone...

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Accounting

Selling Price per unit # of Screens Unit Price Total Price

Iphone Screen
Other repairs
Total Selling Price
AA 21-1 Apple offers extended service contracts that provide repair coverage for its products. Assume Apple charges $160 to repair an iPhone screen and $400 for other repairs. Services are provided in a ratio of 2 screens to 1 other repair (2:1). Variable costs are 40% of selling price for iPhone screen repairs and 48% of selling price for other repairs. Assume fixed costs are $2 billion per year for the repair services department.

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