Answer the Following Questions Using the Information Below

Answer the following questions using the information below:
Elmo's 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:
Assume Reading Fun is the primary product, followed by Math Fun, and then Analysis.
-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 Analysis.

A) $40
B) $44
C) $38
D) $50
E) $28

Correct Answer:

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