Answer the Following Question(s)using the Information Below

question 136

Multiple Choice

Answer the following question(s) using the information below:
Elmo'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:
Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis.
-Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun) ?

• A)$40
• B)$44
• C)$38
• D)$50
• E)$22

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Definitions:

Capital Contributions

The value of assets contributed to a company by its owners or shareholders.

Beginning Capital Balance

The amount of capital recorded in a company's accounts at the start of a financial period.