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 revenue allocation for Game A in Package 1, using physical units as the base.
A) $12.57
B) $13.97
C) $20.84
D) $22.00
E) $23.16
Correct Answer:
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