Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Albers Company sells two or more language books as a single package. The owners are interested in individual product-profitability figures. Information pertaining to three bundled

Albers Company sells two or more language books as a single package. The owners are 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

Spanish Fun

$25

$3.60

1.Spanish Fun & French Fun

$44

French Fun

$30

$4.00

2.Spanish Fun & German Fun

$56

German Fun

$45

$5.00

3. All three

$76

1. Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to French Fun in the package that contains all three products?

Group of answer choices

$30.00

$25.33

$22.80

$24.12

2. Using the Shapley Method, what revenue should be allocated to spanish Fun and French Fun in the first package (Spanish Fun & French Fun)?

Group of answer choices

Spanish $14, French $30

Spanish $25, French $19

Spanish $19.50, French $24.50

Spanish $22, French $22

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

Group of answer choices

$22

$19

$20

$25

4. Using the incremental method, what amount of revenue will be allocated to German Fun in the package that contains all three products? Assume Spanish Fun is the primary product, followed by French Fun, and then German Fun.

Group of answer choices

$22.80

$21.00

$30.00

$25.33

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions