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.

	Stand-Alone Selling Price	Cost	Package	Packaged Price
Reading Fun	$100	$47.20	1. Reading Fun & Math Fun	$176
Math Fun	$120	$88.00	2. Reading Fun & Analysis	$224
Analysis	$180	$110.00	3. All three	$304

Assume Reading Fun is the primary product, followed by Math Fun and Analysis. 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)? Round to the nearest dollar.

Question content area bottom

Part 1

A.

$80

B.

$22

C.

$50

D.

$44

E.

$38