Answer the Following Questions Using the Information Below

question 52

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:

-Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products?

• A)$24.12
• B)$30.00
• C)$22.80
• D)$25.33

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Definitions:

Unadjusted Trial Balance

A preliminary list of all accounts and their balances used in accounting, before any adjustments are made for the closing entries.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency.

Current Liabilities

Short-term financial obligations that are due to be paid within one year or within the business's operating cycle.

Current Assets

Short-term resources that are expected to be converted into cash or used up within one year or within the operating cycle, whichever is longer.