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 Math Fun in the package that contains all three products? (Do not round any intermediary calculations.)
A) $16.51
B) $31.00
C) $23.33
D) $29.39

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 Math Fun in the package that contains all three products? (Do not round any intermediary calculations.)
A) $16.51 
B) $31.00 
C) $23.33 
D) $29.39

Quizplus · Accepted Answer

[$31 / ($20 + $31 + $46)] × $73 = $23.33

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