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:

Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)? (Do not round any intermediary calculations.)
A) $14.90
B) $33.10
C) $30.00
D) $18.00

Question

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:

Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)? (Do not round any intermediary calculations.)
A) $14.90 
B) $33.10 
C) $30.00 
D) $18.00

Quizplus · Accepted Answer

[$18 / ($18 + $40)] × $48 = $14.90

Buzz's Educational Software Outlet Sells Two or More of the Video