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Answer the Following Questions Using the Information Below:
Adelaide Educational

Question 117

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:
 Stand-Alone  Selling Price  Cost  Package  Packaged  Price  Reading Fun $55$7.20 1. Reading Fun & Math Fun $98 Math Fun $65$8.00 2. Reading Fun & Science $122 Science $95$10.00 3. All three $162\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 stand-alone method with selling price as the weight for revenue allocation,what amount of revenue will be allocated to Math Fun in the package that contains all three products?


A) $50.67
B) $48.25
C) $48.98
D) $65.00

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