Answer the Following Questions Using the Information Below:
Buzz's Educational

question 115

Multiple Choice

Answer the following questions using the information below:
Buzz'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:
$$\begin{array} { | l | c | c | l | c | } \hline & \begin{array} { c } \text { Stand-Alone } \\\text { Selling Price }\end{array} & { \text { Cost } } &{ \text { Package } } & \begin{array} { c } \text { Packaged } \\\text { Price }\end{array} \\\hline \text { Reading Fun } & \$ 25 & \$ 3.60 & \text { 1. Reading Fun \& Math Fun } & \$ 44 \\\hline \text { Math Fun } & \$ 30 & \$ 4.00 & \text { 2. Reading Fun \& Analysis } & \$ 56 \\\hline \text { Analysis } & \$ 45 & \$ 5.00 & \text { 3. All three } & \$ 76 \\\hline\end{array}$$
-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) $20
• B) $22
• C) $19
• D) $25

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Definitions:

Chattel

Personal property that is tangible and movable, as opposed to real estate or immovable property.

Tangible Personal Property

Physical property that can be touched and moved, such as furniture, vehicles, and equipment.

Intellectual Property

Various legal rights that grant creators control over their intellectual creations, such as patents, copyrights, trademarks, and trade secrets.

Registration System

A systematic process of recording information or data into an official list or database to ensure its authenticity and reliability.