Software for You encounters revenue-allocation decisions with its bundled product sales. Here, two or more units of
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Required:
a. Using the stand-alone revenue-allocation method, allocate the $380 packaged price of "All Three" to the three software products
1. With selling prices as the weights.
2. With individual product costs as the weights.
3. Based on physical units.
b. Allocate the $380 packaged price of "All Three" to the three software products using the incremental revenue-allocation method. Assume Word Processing is the primary product, followed by Spreadsheet, and then AccountingSoftware.
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Related Book For
Business Law Text and Cases
ISBN: 978-0324655223
11th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F
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