John's Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more...

 

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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: Stand-Alone Sales Price Packaged Price $44 Package Game AGame BGame C Package 1 Package 2 Package 3 N/A $25 $30 25 N/A 25 30 $45 56 45 76 The unit manufacturing costs are $3.60, S4.00, and $5.00 for games A, B, and C, respectively. a) Calculate the allocation of packaged price for Game A in Package 1 ONLY, using selling prices as the base. b) Calculate the allocation of packaged price for Game A in Package 3 ONLY, using selling prices as the base. Calculate the revenue allocation for Game A in Package 1 ONLY, using physical units as the base. dCalculate the allocation of packaged price for Game A in Package 1 ONLY, using unit costs as the base. 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: Stand-Alone Sales Price Packaged Price $44 Package Game AGame BGame C Package 1 Package 2 Package 3 N/A $25 $30 25 N/A 25 30 $45 56 45 76 The unit manufacturing costs are $3.60, S4.00, and $5.00 for games A, B, and C, respectively. a) Calculate the allocation of packaged price for Game A in Package 1 ONLY, using selling prices as the base. b) Calculate the allocation of packaged price for Game A in Package 3 ONLY, using selling prices as the base. Calculate the revenue allocation for Game A in Package 1 ONLY, using physical units as the base. dCalculate the allocation of packaged price for Game A in Package 1 ONLY, using unit costs as the base.

Answer rating: 100% (QA)

Answer 1 In Package 1 there are 2 games ie Game A and Game B Game A standalone selling price 25 G... View the full answer