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 Game A in Package 3, using selling prices as the base.
A) $34.20
B) $30.00
C) $25.00
D) $22.80
E) $19.00
Correct Answer:
Verified
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