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Answer the Following Questions Using the Information Below:
Canberra Home

Question 48

Multiple Choice

Answer the following questions using the information below:
Canberra Home Appliances sells a refrigerator and a freezer as a single package for $1100.Other data are in the chart below.
 Refrigerator  Full-size Freezer  Packaged Price  Selling price $925$450$1100 Manufactuning cost per unit $620$220 Stand-alone product reverues $1225000$775000\begin{array} { | c | c | c | c | } \hline & \text { Refrigerator } & \text { Full-size Freezer } & \text { Packaged Price } \\\hline \text { Selling price } & \$ 925 & \$ 450 & \$ 1100 \\\hline \text { Manufactuning cost per unit } & \$ 620 & \$ 220 & \\\hline \text { Stand-alone product reverues } & \$ 1225000 & \$ 775000 & \\\hline\end{array}
-Using the stand-alone method with stand-alone product revenues as the weight for revenue allocation,what amount will be allocated to the refrigerator?


A) $625.00
B) $673.75
C) $825.00
D) $687.50

Correct Answer:

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