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Use the Information Below to Answer the Following Question(s)

Question 3

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Use the information below to answer the following question(s) .
John's Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John's are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone prices of its individual products is as follows:
Stand-Alone Sales Price
Use the information below to answer the following question(s) . John's Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John's are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone prices of its individual products is as follows: Stand-Alone Sales Price    The unit manufacturing costs are $3.60, $4.00, and $5.00 for games A, B, and C, respectively. -Calculate the allocation of packaged price for Game A in Package 1, using selling prices as the base. A)  $14.00 B)  $20.00 C)  $30.00 D)  $25.00 E)  $35.00 The unit manufacturing costs are $3.60, $4.00, and $5.00 for games A, B, and C, respectively.
-Calculate the allocation of packaged price for Game A in Package 1, using selling prices as the base.


A) $14.00
B) $20.00
C) $30.00
D) $25.00
E) $35.00

Correct Answer:

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