Answer the Following Questions Using the Information Below:
Adelaide Educational

Multiple Choice

Answer the following questions using the information below:
Adelaide Educational Software Outlet sells two or more of the video games as a single package.Managers are keenly interested in individual product-profitability figures.Information pertaining to three bundled products and the stand-alone prices is as follows:
$$\begin{array} { | c | c | c |c| c | c | } \hline & \begin{array} { c } \text { Stand-Alone } \\\text { Selling Price }\end{array} & \text { Cost } && \text { Package } & \begin{array} { c } \text { Packaged } \\\text { Price }\end{array} \\\hline \text { Reading Fun } & \$ 55 & \$ 7.20 && \text { 1. Reading Fun \& Math Fun } & \$ 98 \\\hline \text { Math Fun } & \$ 65 & \$ 8.00 && \text { 2. Reading Fun \& Science } & \$ 122 \\\hline \text { Science } & \$ 95 & \$ 10.00 && \text { 3. All three } & \$ 162 \\\hline\end{array}$$
-Using the incremental method for revenue allocation,what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun) ? Assume Reading Fun is the primary product,followed by Math Fun,and then Science.

A) $40
B) $38
C) $44
D) $55