# 21 calculate the allocation of packaged price game a in package 3 using selling pric 4302759

21) Calculate the allocation of packaged price Game A in Package 3, using selling prices as the base.

A) \$34.20

B) \$30.00

C) \$25.00

D) \$22.80

E) \$19.00

22) 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

23) Calculate the allocation of packaged price for Game A in Package 1, using unit costs as the base.

A) \$12.57

B) \$13.97

C) \$20.84

D) \$22.00

E) \$23.16

24) To give more weight to the product that most likely drives the sales of the bundled product, the revenue allocation should be weighted using

A) selling prices.

B) unit costs.

C) physical units.

D) stand-alone product revenues.

E) total product costs.

Answer the following questions 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:

 Stand-Alone Selling Price Cost Package Packaged Price Reading Fun \$50 \$7.20 1. Reading Fun & Math Fun \$88 Math Fun \$60 \$8.00 2. Reading Fun & Analysis \$112 Analysis \$90 \$10.00 3. All three \$152

Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis.

25) Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)?

A) \$40

B) \$44

C) \$38

D) \$50

E) \$22

26) Using the incremental method for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)? Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis.

A) \$40

B) \$44

C) \$38

D) \$50

E) \$28

27) 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

28) Using the incremental method, 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) \$90.00

Answer the following questions using the information below:

The Appliance Store sells a refrigerator and a freezer as a single package for \$1,000. Other data are in the chart below.

 Refrigerator Full-size Freezer Packaged Price Selling price \$825 \$375 \$1,000 Manufacturing cost per unit \$620 \$180 Stand-alone product revenues \$1,225,000 \$775,000

29) Using the stand-alone method with selling price as the weight for revenue allocation, what amount will be allocated to the refrigerator?

A) \$500.00

B) \$825.00

C) \$687.50

D) \$625.00

E) \$375.00

30) Using the stand-alone method with stand-alone product revenues as the weight for revenue allocation, what amount will be allocated to the refrigerator?

A) \$687.50

B) \$612.50

C) \$625.00

D) \$825.00

E) \$505.31

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