Manny's DVD Store encounters revenue allocation decisions with its bundled product sales.Here, two or more of the DVDs are sold as a single package.Managers at Max's are keenly interested in individual product profitability figures.Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows:
Required:
a.With cost as the weights, allocate the $17 packaged price of "New & Classics" using the stand-alone revenue allocation method.

Question

Manny's DVD Store encounters revenue allocation decisions with its bundled product sales.Here, two or more of the DVDs are sold as a single package.Managers at Max's are keenly interested in individual product profitability figures.Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows:
  Required:
a.With cost as the weights, allocate the $17 packaged price of "New & Classics" using the stand-alone revenue allocation method.

Quizplus · Accepted Answer

The Answer of Manny's DVD Store encounters revenue allocation decisions with its bundled product sales.Here, two or more of the DVDs are sold as a single package.Managers at Max's are keenly interested in individual product profitability figures.Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows:
  Required:
a.With cost as the weights, allocate the $17 packaged price of "New & Classics" using the stand-alone revenue allocation method.

Manny's DVD Store Encounters Revenue Allocation Decisions with Its Bundled