Author Question: Buzz's Educational Software Outlet sells two or more of the video games as a single package. ... (Read 50 times)

Redwolflake15 · **on:** Mar 6, 2021

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.)
◦ $20.07
◦ $30.93
◦ $27.00
◦ $24.00

randomguy133 · **Reply #1 on:** Mar 6, 2021

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