Question
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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