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q 33 Decay Candy Shop encounters revenue allocation decisions with its bundled product sales Here, two or more of the candies are sold as a
q 33
Decay Candy Shop encounters revenue allocation decisions with its bundled product sales Here, two or more of the candies are sold as a single package Managers at Decay'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 Candy A Candy B Candy C Package 1 Package 2 Package 3 The unit manufacturing costs are $7.50, $4.20, and $12.00 for candies A, B, and C, respectively $32 32 32 $24 N/A 24 N/A $44 44 Packaged Price $72 110 145 Calculate the allocation of packaged price Candy C in Package 3, using selling prices as the base O A. $63.80 OB. $44.00 OC. $19.00 O D. $46.40 O E. $48.33Step by Step Solution
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