Question
Electro Corp sells a refrigerator and freezer as a single package for $1,060. Other data is found in the graph below. Fridge fulllesssize Freezer Packaged
Electro Corp sells a refrigerator and freezer as a single package for $1,060.
Other data is found in the graph below.
Fridge | fullless−size Freezer | Packaged Price | |
Sale price | $860 | $400 | $1,060 |
Manufacturing cost per unit | $600 | $250 | |
stand minus alone product revenue | $1,290,000 | $ 900,000 |
Using the stand-alone method with the sales price as the weight for the revenue allocation, how much will be allocated to the refrigerator?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
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