Author Question: A company sells a software suite that includes a word processor and spreadsheet applications. The ... (Read 45 times)

Kikoku · **on:** Mar 6, 2021

A company sells a software suite that includes a word processor and spreadsheet applications. The suite sells for $250 and the items are also available separately for $200 (spreadsheet) and $170 (word processor). The spreadsheet app is by far the best seller of the standalone product sales. Using the incremental-revenue allocation method and assuming that the spreadsheet is the primary product, how much of the $250 revenue from the bundled product sale would be allocated to the spreadsheet and to the word processing products?
◦ $200 of revenue for the spreadsheet and $50 for the word processor
◦ $200 of revenue for the spreadsheet and $0 for the word processor
◦ $135 of revenue for the spreadsheet and $115 for the word processor
◦ $250 of revenue for the spreadsheet and $0 for the word processor

amy.lauersdorf90 · **Reply #1 on:** Mar 6, 2021

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