Burger Queen offers a lunch meal deal for its customers. The customer will get a burger, fry, soft drink, and ice cream for $5. If the customer were to buy each item individually, the cost would be broken down as follows: Using the incremental cost allocation, how must of the transaction price should be allocated to the fry, soft drink, and ice cream? (do not round intermediary calculations)

Question

Burger Queen offers a lunch meal deal for its customers. The customer will get a burger, fry, soft drink, and ice cream for $5. If the customer were to buy each item individually, the cost would be broken down as follows:  Using the incremental cost allocation, how must of the transaction price should be allocated to the fry, soft drink, and ice cream? (do not round intermediary calculations)

Quizplus · Accepted Answer

Burger, highest ranked, $2.50
Second ranked Ice cream $1.50
Third ranked, fry $5 - $2.50 - $1.50 = $1.00
Last, Drink, $0 ($5 - $2.50 - $1.50 - $1.00)

Burger Queen Offers a Lunch Meal Deal for Its Customers