Craylon Corp sells two products X and Y.X sells for $200 and Y sells for $150.Both X and Y sell for $300 as a bundle.What is the revenue allocated to product Y,if product X is termed as the primary product in the bundle?
A) $100
B) $128.50
C) $110
D) $112.85

Question

Quizplus · Accepted Answer

When allocating revenue in a bundle, the primary product (X) is typically allocated its full standalone selling price first. Since X sells for $200, the remaining revenue from the bundle ($300 - $200 = $100) is allocated to product Y.

Craylon Corp Sells Two Products X and Y