Buzz's Educational Software Outlet sells two or more of the video games as a single package....

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Buzz's Educational Software Outlet sells two or more of the video games as a single package....

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 amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)? Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis. (Do not round any intermediary calculations.)

	A.	$20.07
	B.	$30.93
	C.	$27.00
	D.	$24.00

business accounting

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Answer 1

Answer #1

package Answer:- Revenue to be allocated in first Total prices $51 price of reading Fun $24 $24 Remaining price for Malth Fun

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Answer 2

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Buzz's Educational Software Outlet sells two or more of the video games as a single package....

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