Software for You Encounters Revenue Allocation Decisions with Its Bundled

question 108

Essay

Software For You encounters revenue allocation decisions with its bundled product sales.Two or more units of the software 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 selling prices of its individual products is as follows:

Required:
a.Using the stand-alone revenue allocation method,allocate the $380 packaged price of "All Three" to the three software products
1.with selling prices as the weights.
2.based on physical units.
b.Allocate the $380 packaged price of "All Three" to the three software products using the incremental revenue allocation method.Assume Word Processing is the primary product,followed by Spreadsheet,and then Accounting Software.

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Definitions:

Aponeurosis

A flat and fibrous sheet or ribbon of connective tissue that acts as a tendon to attach muscles to bone or other tissues.

Shoulder Joint

A ball and socket joint that allows a wide range of movement, formed where the humerus fits into the scapula.

Anatomic Position

A reference posture with the body standing upright, arms at the sides, palms facing forward, used to describe the location of body parts.

Flexed

The position of a limb or body part that is bent, reducing the angle between the bones at a joint.