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Buzz'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.
Buzz'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 Cost Package Selling Price Packaged Price Reading Fun $19 Math Fun Analysis $40 $46 $3.50 $4.20 $5.35 1. Reading Fun & Math Fun 2. Reading Fun & Analysis 3. All three $49 $51 $81 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)? Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis. (Do not round any intermediary calculations.) A. $19.00 O B. $15.78 C. $30.00 D. $33.22
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