A Company Sells a Software Suite That Includes a Word

question 4

Multiple Choice

A company sells a software suite that includes a word processor and spreadsheet applications. The suite sells for $250 and the items are also available separately for $200 (spreadsheet) and $170 (word processor) . The spreadsheet app is by far the best seller of the standalone product sales. Using the incremental-revenue allocation method and assuming that the spreadsheet is the primary product, how much of the $250 revenue from the bundled product sale would be allocated to the spreadsheet and to the word processing products?

• A) $200 of revenue for the spreadsheet and $50 for the word processor
• B) $200 of revenue for the spreadsheet and $0 for the word processor
• C) $135 of revenue for the spreadsheet and $115 for the word processor
• D) $250 of revenue for the spreadsheet and $0 for the word processor

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Definitions:

Care Ethics

A normative ethical theory that emphasizes interpersonal relationships and care or benevolence as a virtue in moral decision-making.

Morality

A system or code of conduct and principles that guides individual or societal judgments about what is right and wrong, good and bad.

Ethical Relativism

The belief that morality is not universal and that ethical truths depend on the cultural, social, or individual context.

Cultural Relativism

The belief that moral and ethical systems are relative to cultural or societal contexts, and that no one system can be deemed universally applicable.