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BUNDLED REVENUE - STAND ALONE AND INCREMENTAL. Software For You encounters revenue-allocation decisions with its bundled product sales. Here, two or more units of the
BUNDLED REVENUE - STAND ALONE AND INCREMENTAL. Software For You encounters revenue-allocation decisions with its bundled product sales. Here, two or more units of the software are sold as a single package. Managers at Software For You are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows: Required: a. Using the stand-alone revenue-allocation method, allocate the $380 packaged price of "All Three" to the three software products 1. with selling prices as the weights. 2. with individual product costs as the weights. b. Allocate the $380 packaged price of "All Three" to the three software products using the incremental revenue-allocation method. Assume Word Processing is the primary product, followed by Spreadsheet, and then Accounting Software
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