Top Posters
Since Sunday
t
7
m
6
k
6
F
5
j
5
t
5
j
5
G
5
f
5
a
5
d
5
c
5
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
jerico jerico
wrote...
Go to Answer
Posts: 4603
Rep: 8 0
9 years ago
Software For You encounters revenue-allocation decisions with its bundled product sales. Here, two or more units of the software are sold as a single package. Managers at Software For You are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows:

   Stand-Alone Selling Price,   Cost      Package   Packaged Price
Word Processing (WP)   $125   $18      WP & SS   $220
Spreadsheet (SS)   $150   $20      WP & AS   $280
Accounting Software (AS)   $225   $25      All three   $380

Required:
a.   Using the stand-alone revenue-allocation method, allocate the $380 packaged price of "All Three" to the three software products
   1.   with selling prices as the weights.
   2.   with individual product costs as the weights.
   3.   based on physical units.

b.   Allocate the $380 packaged price of "All Three" to the three software products using the incremental revenue-allocation method. Assume Word Processing is the primary product, followed by Spreadsheet, and then Accounting Software.
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
Read 936 times
4 Replies
Replies
Answer verified by a subject expert
cyborgcyborg
wrote...
#1
Top Poster
Posts: 4566
Rep: 218 1
9 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 140 words.
1

Related Topics

jerico Author
wrote...
#2
9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
wrote...
#3
9 years ago
Cool! No problem.
wrote...
#4
4 years ago
thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  685 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 99
  
 328
  
 294
Your Opinion
Which is the best fuel for late night cramming?
Votes: 146
Previous poll results: Which of the following is the best resource to supplement your studies: