Use the Information Below to Answer the Following Question(s)

question 141

Multiple Choice

Use the information below to answer the following question(s) .John's Video Game Outlet encounters revenue-allocation decisions with its bundled product sales.Here, two or more of the video games are sold as a single package.Managers at John's are keenly interested in individual product-profitability figures.Information pertaining to its three bundled products and the stand-alone prices of its individual products is as follows:
The unit manufacturing costs are $3.60, $4.00, and $5.00 for games A, B, and C, respectively.
-Calculate the allocation of packaged price for Game A in Package 1, using unit costs as the base.

• A)$12.57
• B)$13.97
• C)$20.84
• D)$22.00
• E)$23.16

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Definitions:

Zero Profit

A condition in which a firm's total revenues are exactly equal to its total costs, making no economic profit.

Electricity Prices

The amount charged by energy suppliers for the consumption of electrical power.

Member-Owners

Member-Owners are individuals or entities that own a share of a cooperative or membership-based organization, granting them certain rights and responsibilities within that organization.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.