Answer the Following Questions Using the Information Below:
Electro Corp

question 120

Multiple Choice

Answer the following questions using the information below:
Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.
$$\begin{array} { | l | c | c | c | } \hline & \text { Refrigerator } & \text { Full-size Freezer } & \text { Packaged Price } \\\hline \text { Selling price } & \$ 800 & \$ 400 & \$ 1,000 \\\hline \text { Manufactuing cost per unit } & \$ 600 & \$ 200 & \\\hline \text { Stand-alone product revenues } & \$ 1,200,000 & \$ 800,000 & \\\hline\end{array}$$
-Using the stand-alone method with stand-alone product revenues as the weight for revenue allocation,what amount will be allocated to the refrigerator?

• A) $628.50
• B) $600.00
• C) $627.00
• D) $625.00

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