Elmo'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	Cost		Package	Packaged Price
Reading Fun	$50	$7.20		1. Reading Fun & Math Fun	$88
Math Fun	$60	$8.00		2. Reading Fun & Analysis	$112
Analysis	$90	$10.00		3. All three	$152

Assume Reading Fun is the primary product, followed by Math Fun, and then 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)?

Select one:

A. $38

B. $28

C. $44

D. $40

E. $50

2)

John's Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John's are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone prices of its individual products is as follows: Stand-Alone Sales Price

Package	Game A	Game B	Game C	Packaged Price
Package 1	$25	$30	N/A	$44
Package 2	25	N/A	$45	56
Package 3	25	30	45	76

The unit manufacturing costs are $3.60, $4.00, and $5.00 for games A, B, and C, respectively. Calculate the allocation of packaged price for Game A in Package 1, using selling prices as the base.

Select one:

A. $25.00

B. $14.00

C. $20.00

D. $30.00

E. $35.00

3)

Zorro Company manufactures remote control devices for garage doors. The following information was collected during June: Actual market size (units) 10,000 Actual market share 32% Actual average selling price $10.00 Budgeted market size (units) 11,000 Budgeted market share 30% Budgeted average selling price $11.00 Budgeted contribution margin per composite unit for budgeted mix $5.00 What is the Zorro Company market-size variance?

Select one:

A. $500 U

B. $1,000 F

C. $1,500 U

D. $1,600 F

E. $1,500 F