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:

Randomly Assigned

A method used in research studies where participants are assigned to different groups in a completely unpredictable manner to ensure that the groups are equivalent at the start.

Preexisting Differences

Variations among individuals or groups that exist before the start of an experiment or study, which could affect its outcomes.

Research Participants

Individuals who take part in scientific studies, providing data for analysis and insights into various research questions.

Causes and Effects

A relationship between two phenomena where one (the cause) directly results in the other (the effect).