Software for You Encounters Revenue Allocation Decisions with Its Bundled

question 131

Essay

Software For You encounters revenue allocation decisions with its bundled product sales.Two or more of the programs are sold as a single package.Managers at Software For You 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 inventory costs is $18,$20,and $25 for WP,SS,and AS,respectively.Assume AS is the primary product,followed by SS,then WP.
Required:
Allocate the bundle revenue to each product in Package C,using inventory unit costs as the weighting factor.

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Reasonable Price

A price that is fair and acceptable to both buyers and sellers, given the quality and nature of the product or service.

Services and Products

The combination of tangible goods and intangible activities that fulfill a need or want of consumers.

CSR Levels

The varying degrees to which a business engages in corporate social responsibility initiatives, from basic compliance with laws to integrating social and environmental concerns into their business model.