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:
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.

Question

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:
  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.

Quizplus · Accepted Answer

The allocation of the packaged price for Game A is calculated based on the proportion of its selling price relative to the total selling prices of all games in the package.

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