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raketka [301]
3 years ago
5

) A company sells a software suite that includes a word processor and spreadsheet applications. The suite sells for $250 and the

items are also available separately for $200 (spreadsheet) and $170 (word processor). The spreadsheet app is by far the best seller of the standalone product sales. Using the incremental-revenue allocation method and assuming that the spreadsheet is the primary product, how much of the $250 revenue from the bundled product sale would be allocated to the spreadsheet and to the word processing products?
Business
1 answer:
DIA [1.3K]3 years ago
7 0

Answer:

Allocated to the the word processing products would be$80

To the spreadsheet would be allocated revenues for $170

Explanation:

In order to calculate how much of the $250 revenue from the bundled product sale would be allocated to the the word processing products we would have to use the following formula:

allocated to the the word processing products= sold price suits- spreadsheet price

allocated to the the word processing products= $250-$170

allocated to the the word processing products=$80

To the spreadsheet would be allocated revenues for $170

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