Question

$82 Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products

Answer 1

Answer:

$28.62

Explanation:

Calculation to determine what amount of revenue will be allocated to Math Fun in the package that contains all three products

First step is to calculate the Total revenue of three product if sold individually

Total revenue= $21 + $37 + $48

Total revenue= $106

Now let calculate the allocation of revenue to Math fun based on revenue proportion

Using this formula

Revenue allocation= Packaged revenue / Total individually revenue * Revenue of Math fun

Let plug in the formula

Revenue allocation= $82/106*37

Revenue allocation= $28.62

Therefore the amount of revenue that will be allocated to Math Fun in the package that contains all three products is $28.62