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11. Elmo's Educational Software Outlet sells two or more of the video games as a single package. Managers are keenly interested in individual product-profitability figures.

11.

Elmo's Educational Software Outlet sells two or more of the video games as a single package. Managers are keenly interested in individual product-profitability figures. Information pertaining to three bundled products and the stand-alone prices is as follows:

Stand-Alone

Selling Price

Cost

Package

Packaged

Price

Reading Fun

$40

$7.20

1. Reading Fun & Math Fun

$58

Math Fun

$30

$8.00

2. Reading Fun & Analysis

$80

Analysis

$50

$10.00

3. All three

$100

Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)?

Select one:

a. $40

b. $30

c. $33

d. $29

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