Question: Swippy Software offers three software products: a word processing software, a spreadsheet software, and an accounting software. Information for the stand-alone selling prices and costs

Swippy Software offers three software products: a word processing software, a spreadsheet software, and an accounting software. Information for the stand-alone selling prices and costs of its individual products is as follows:

Stand-Alone Selling Price,

Cost

Word Processing (WP)

$75

$18

Spreadsheet (SS)

$90

$20

Accounting Software (AS)

$65

$25

Recently, Swippy Software has begun offering software bundles, which includes all three programs at a discounted price. The bundle price for the software is $185.00

Using the unit cost as the weights, allocate the bundled price to the three programs using the stand-alone revenue-allocation method.

Allocate the bundled price to the three types products using the incremental revenue-allocation method. Assume Spreadsheets is the primary product, followed by Word Processing, and then Accounting Software.

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