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Author Question: Buzz's Educational Software Outlet sells two or more of the video games as a single package. ... (Read 56 times)

Redwolflake15

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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 PriceCostPackagePackaged
Price
Reading Fun$24$3.651. Reading Fun & Math Fun$51
Math Fun$37$4.302. Reading Fun & Analysis$63
Analysis$53$5.353. 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


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Marked as best answer by Redwolflake15 on Mar 6, 2021

randomguy133

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Redwolflake15

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


diana chang

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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