Electro Corp Sells a Refrigerator and a Freezer as a Single

question 79

Multiple Choice

Electro Corp sells a refrigerator and a freezer as a single package for $1150. Other data are in the chart below.

Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation, what amount will be allocated to the refrigerator? (Do not round any intermediary calculations.)

• A) $304.82
• B) $575.00
• C) $661.45
• D) $845.18

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Definitions:

Main Effect

The direct influence of an independent variable on a dependent variable in an experiment, disregarding the effects of or interactions with other variables.

Day of Week

Indicates one of the seven named divisions in a week, ranging from Sunday to Saturday.

Interaction Effect

In statistics, it refers to a situation in which the effect of one independent variable on a dependent variable changes depending on the level of another independent variable.

Marginal Mean

The mean of the subset of observations that contribute to the marginal total, providing insight into specific group effects within a larger dataset.