Buzz's Educational Software Outlet sells two or more of the video games as a single...
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Accounting
Buzz's Educational Software Outlet sells two or more of the video games as a single package. Managers are keenly interested in individual productprofitability figures. Information pertaining to three bundled products and the standalone prices is as follows:
StandAlone Selling Price
Cost
Package
Packaged Price
Reading Fun
$16
$3.40
1. Reading Fun & Math Fun
$42
Math Fun
$36
$4.05
2. Reading Fun & Analysis
$50
Analysis
$48
$5.45
3. All three
$76
Using the standalone 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? (Do not round any intermediary calculations.)
A. $32.57
B. $18.00
C. $36.00
D. $27.36
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