Buzz'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 |
$20 |
$3.75 |
1. Reading Fun & Math Fun |
$41 |
|
Math Fun |
$31 |
$4.35 |
2. Reading Fun & Analysis |
$52 |
|
Analysis |
$46 |
$5.00 |
3. All three |
$73 |
Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Math Fun in the package that contains all three products? (Do not round any intermediary calculations.)
A. |
$29.39 |
|
B. |
$23.33 |
|
C. |
$16.51 |
|
D. |
$31.00 |
Weight of math fun taking selling price into account = 31/(20+31+46) = 0.31959 Amount of revenue allocated = 73*0.31959 = 23.33 Option B is the answer |
|
Buzz's Educational Software Outlet sells two or more of the video games as a single package....
Question 12 Buzz's Educational Software Outlet sells two or more of the video games as a single package. Managers are only interested in individual producto Information pertaining to three bundled products and the stand-alone prices is as follows r es Stand Alone Selling Price Cost Package Packaged Price $41 Reading Fun Math Fun $20 $31 $46 $3.75 $4.35 $5.00 1. Reading Fun & Math Fun 2. Reading Fun & Analysis . All three Analysis $73 Using the stand-alone method with...
Buzz'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 $24 $3.65 1. Reading Fun & Math Fun $51 Math Fun $37 $4.30 2. Reading Fun & Analysis $63 Analysis $53 $5.35 3. All three $90 Using the incremental method for revenue allocation, what...
Buzz'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 $21 $3.80 1. Reading Fun & Math Fun $48 Math Fun $37 $4.15 2. Reading Fun & Analysis $55 Analysis $48 $5.30 3. All three $82 Using the incremental method, what amount of revenue...
Buzz'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 $21 $3.80 1. Reading Fun & Math Fun $48 Math Fun $37 $4.15 2. Reading Fun & Analysis $55 Analysis $48 $5.30 3. All three $82 Using the incremental method, what amount of revenue...
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