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Spear Inc. sells a bundled product containing a baseball glove and a bat for $130. Spears also sells each product separately - the glove sells
Spear Inc. sells a bundled product containing a baseball glove and a bat for $130. Spears also sells each product separately - the glove sells for $60 on its own and the bat sells for $90. Based on the relative fair values of the products, how much of the bundled revenue should Spear allocate to the glove and to the bat? How would your answer change if the glove had no stand- alone price?
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