1 answer

00. A software development company offers different products that can be purchased as stand- alone applications...

Question:

00. A software development company offers different products that can be purchased as stand- alone applications or that can b
00. A software development company offers different products that can be purchased as stand- alone applications or that can be bundled together. The Icon Editor sells for $19.95 and the Icon Manager sells for $35.50. The 2 products are available as a bundle for $39.95. What is the revenue allocated to the Icon Manager if the company uses the individual selling prices and the stand-alone method to allocate revenue between bundled products? 1) $19.55 2) $19.95 3) $20.00 4) $25.58

Answers

Individual selling price of Icon editor = $19.95

Individual selling price of Icon Manager= $35.50

Total of individual selling price of Icon editor and icon manger = 19.95+35.50

= $55.45

Bundle price of icon editor and icon manager = $39.95

Revenue allocated to Icon manager =Individual selling price of Icon Manager x Bundle price of icon editor and icon manager/Total of individual selling price of Icon editor and icon manger

= 35.50 x 39.95/55.45

= $25.58

Correct option is 4.

Kindly comment if you need further assistance. Thanks‼!

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