Question: The store offers three software products: video game, Console, and a controller. Information for the stand-alone selling prices and costs of its individual products is

  1. The store offers three software products: video game, Console, and a controller. Information for the stand-alone selling prices and costs of its individual products is as follows:

Stand-Alone Selling Price,

Cost

Video game

(VG)

$75

$18

Console (C)

$90

$20


Controller (CR)

$65

$25

Recently, the store has begun offering bundles, which includes all three programs at a discounted price. The bundle price for the package is $185.00

           

  1. Using the unit cost as the weights, allocate the bundled price to the three programs using the stand-alone revenue-allocation method.

  1. Allocate the bundled price to the three types products using the incremental revenue-allocation method. Assume Console is the primary product, followed by Videogame, and then Controller.

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