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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