Answer the following question(s)using the information below:
Elmo'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:
Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis.
-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?
A)$48.25
B)$60.00
C)$45.60
D)$50.67
E)$33.60

Question

Answer the following question(s)using the information below:
Elmo'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:
  Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis.
-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?
A)$48.25 
B)$60.00 
C)$45.60 
D)$50.67 
E)$33.60

Quizplus · Accepted Answer

The stand-alone method allocates revenue based on the proportion of each product's selling price to the total selling price of all products in the package. If Math Fun's selling price is $45.60, and this is the correct allocation based on the given package, then $45.60 is the amount allocated to Math Fun.

Answer the Following Question(s)using the Information Below