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Author Question: Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in ... (Read 75 times)

vinney12

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Question 1

Craylon Corp sells two products X and Y. X sells for $200 and Y sells for $160. Both X and Y sell for $310 as a bundle. What is the revenue allocated to product Y, if product X is termed as the primary product in the bundle?
◦ $110
◦ $40
◦ $80
◦ $155

Question 2

Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.

RefrigeratorFull-size FreezerPackaged Price
Selling price$820$400$1020
Manufacturing cost per unit$640$300
Stand-alone product revenues$1,390,000$830,000
Using the stand-alone method with physical units as the weight for revenue allocation, what amount will be allocated to the refrigerator?
◦ $510
◦ $180
◦ $640
◦ $820


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Marked as best answer by vinney12 on Mar 6, 2021

kaillie

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vinney12

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Reply 2 on: Mar 6, 2021
Excellent


flexer1n1

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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