Jonathan Values Word at $100 and Excel at $90, and Ashley

question 244

Multiple Choice

Jonathan values Word at $100 and Excel at $90, and Ashley values Word at $80 and Excel at $60. If the programs are sold as a bundle, what is the profit-maximizing price?

• A) $90
• B) $110
• C) $140
• D) $190

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Definitions:

Cost of Goods Sold

The direct financial outlays for producing the products a company sells, incorporating both labor and material costs.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including materials, labor, and overhead costs.

Finished Goods Inventory

Inventory of finished goods awaiting sale but not yet purchased by consumers.