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

question 94

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 revenue allocation for Game A in Package 1, using physical units as the base.

• A)$12.57
• B)$14.67
• C)$20.84
• D)$22.00
• E)$23.16

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Definitions:

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and training costs.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period in the future, often used for setting financial goals.

Administrative Expenses

Overhead costs related to the general operation of a company, such as salaries of executive personnel, office supplies, and utilities.

Planning Budget

A budget designed for a specific level of activity, used for planning and control purposes.