The store offers three software products: video game, Console, and a controller. Information for the stand-alone selling
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Question:
- The store offers three software products: video game, Console, and a controller. Information for the stand-alone selling prices and costs of its individual products is as follows:
Stand-Alone Selling Price, | Cost | ||
Video game (VG) | $75 | $18 | |
Console (C) | $90 | $20 | |
| $65 | $25 |
Recently, the store has begun offering bundles, which includes all three programs at a discounted price. The bundle price for the package 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 Console is the primary product, followed by Videogame, and then Controller.
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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