Buzz's Educational Software Outlet Sells Two or More of the Video

question 11

Multiple Choice

Buzz'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:

Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products? Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis. (Do not round any intermediary calculations.)

• A) $20.89
• B) $37.00
• C) $28.62
• D) $35.69

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Definitions:

Legally Purchase

Refers to buying goods or services in accordance with the law.

Internet Shopping

The act of purchasing goods or services via the internet through online retailers and marketplaces.

Competitive Market

A market structure characterized by many buyers and sellers, such that no single entity can dictate prices or terms of sale.

Soybean Market

A specific sector of the agricultural market focused on the trading and production of soybeans.