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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. Information
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 Selling price | |||||||||||
Reading Fun | $25 | ||||||||||
Math Fun | $30 | ||||||||||
Analysis | $45 | ||||||||||
Package | Package price | ||||||||||
Package 1 | Reading Fun & Math Fun | $44 | |||||||||
Package 2 | Reading Fun & Analysis | $56 | |||||||||
Package 3 | All three products | $76 | |||||||||
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 Package 1? |
A. | $11.00 | |
B. | $19.00 | |
C. | $20.00 | |
D. | $25.45 | |
E. | $22.00 |
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