A Company Sells a Software Suite That Includes a Word

question 4

Multiple Choice

A company sells a software suite that includes a word processor and spreadsheet applications. The suite sells for $250 and the items are also available separately for $200 (spreadsheet) and $170 (word processor) . The spreadsheet app is by far the best seller of the standalone product sales. Using the incremental-revenue allocation method and assuming that the spreadsheet is the primary product, how much of the $250 revenue from the bundled product sale would be allocated to the spreadsheet and to the word processing products?

• A) $200 of revenue for the spreadsheet and $50 for the word processor
• B) $200 of revenue for the spreadsheet and $0 for the word processor
• C) $135 of revenue for the spreadsheet and $115 for the word processor
• D) $250 of revenue for the spreadsheet and $0 for the word processor

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Definitions:

Specific Trait

A characteristic or feature of an organism that can vary among individuals or over time.

Klinefelter Syndrome

A genetic condition in males caused by having one or more extra X chromosomes, often leading to reduced fertility and physical differences.

Sex Chromosome

Chromosomes that determine biological sex in an organism, with common examples being XX for females and XY for males in humans and other mammals.

Achondroplasia

A genetic disorder characterized by dwarfism, specifically affecting bone growth and resulting in disproportionately short limbs.