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Alberta's Educational Software Outlet sells two or more of its video games as a single package. Managers are keenly interested in individual product profitability figures.
Alberta's Educational Software Outlet sells two or more of its 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 shown below. Reading Fun Stand-Alone Selling Price $100 Packaged Cost Package Price $47.20 Math Fun Analysis $120 $180 $88.00 1. Reading Fun & Math Fun 2. Reading Fun & Analysis $176 $224 $110.00 3. All three $304 Assume Reading Fun is the primary product, followed by Math Fun and Analysis. Using the incremental method for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)? Round to the nearest dollar. OA. $28 OB. $40 OC. $100 OD. $38 E. $44
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