Author Question: Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in ... (Read 43 times)

vinney12 · **on:** Mar 6, 2021

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.

	Refrigerator	Full-size Freezer	Packaged 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

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

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