Abhaliya Buzz's Educational Software Outlet sells two or more of its video games as a singlepackage. Managers are keenly interested in individual product profitability figures.Information pertaining to three bundled products and the stand-alone prices is asfollows:ReadingFunMathFunStand-AloneCost$19$22$25$10SellingPrice$12.50 $3.60Package1. Reading Fun &Math Fun2. Reading Fun &$15.00 $4.00AnalysisAnalysis $22.50 $5.00 3. All threePackagedPrice$22$28$38Using the stand-alone method with selling price as the weight for revenueallocation, what amount of revenue will be allocated to Reading Fun in the firstpackage (Reading Fun & Math Fun)?

The process of allocating costs to certain cost centers, goods, services, or other organizational…

Buzz's Educational Software Outlet sells two or more of its 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: Reading Fun Math Fun Analysis Stand- Alone Selling Price $12.50 $3.60 $19 $22 $25 $10 Cost Package 1. Reading Fun & Math Fun 2. Reading Fun & $15.00 $4.00 Analysis $22.50 $5.00 3. All three Packaged Price $22 $28 $38 Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)?

Buzz's Educational Software Outlet sells two or more of its 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: Reading Fun Math Fun Analysis Stand- Alone Selling Price $12.50 $3.60 $19 $22 $25 $10 Cost Package 1. Reading Fun & Math Fun 2. Reading Fun & $15.00 $4.00 Analysis $22.50 $5.00 3. All three Packaged Price $22 $28 $38 Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Reading Fun in the first package (Reading Fun & Math Fun)?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 5P: Jims Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two...

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Swippy Software offers three software products: a word processing software, a spreadsheet software, and an accounting software. Information for the stand-alone selling prices and costs of its individual products is as follows: Stand-Alone Selling Price, Cost Word Processing (WP) $75 $18 Spreadsheet (SS) $90 $20 Accounting Software (AS) $65 $25 Recently, Swippy Software has begun offering software bundles, which includes all three programs at a discounted price. The bundle price for the software is $185.00 Using the unit cost as the weights, allocate the bundled price to the three programs using the stand-alone revenue-allocation method. Allocate the bundled price to the three types products using the incremental revenue-allocation method. Assume Spreadsheets is the primary product, followed by Word Processing, and then Accounting Software.
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Jims Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows: Ds = demand for the Sky Eagle, Ps is the selling price of the Sky Eagle, DH is the demand for the Horizon, and PH is the selling price of the Horizon. DS=2220.60Ps+0.35PHDH270+0.10Ps0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models, and find the prices that maximize revenue.
Q1. Murray furniture store sells couches as a retailer. The wholesale cost to them of their most popular model of couch varies depending on how many they purchase for sale. For the first 200 couches the cost is $299 each; for the next 200 couches it drops to $250 each; and for every couch after that it costs $225. Create an excel function using the IF function to show the gross profit under the following scenarios: a. b. It sells at a price of $650 and 350 units are purchased for sale and sold It sells at a price of $625 and 300 units are purchased for sale and sold It sells at a price are $700 and 1,000 units are purchased for sale and sold C.
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Customer Value, Strategic PositioningAdriana Alvarado has decided to purchase a personal computer. She hasnarrowed the choices to two: Drantex (ad Confiar. Both brands have thesame processing speed, 6.4 gigabytes of hard-disk capacity, two USBports, and a DVDRW drive, and each comes with the same basic softwaresupport package. Both come from mail-order companies with goodreputations. The selling price for each is identical. After some review,Adriana discovers that the cost of operating and maintaining Drantexover a 3-year period is estimated to be $300. For Confiar, the operatingand maintenance cost is $600. The sales agent for Drantex emphasizedthe lower operating and maintenance costs. The agent for Confiar,however, emphasized the service reputation of the product and thefaster delivery time (Confiar can be purchased and delivered 1 weeksooner than Drantex). Based on all the information, Adriana has decidedto bur Confiar. Required:1. What is the total product purchased by Adriana?2.…
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Zapo 1-2-3 is a top-selling electronic spreadsheet product. Zapo is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Zapo 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: E (Click the icon to view the price and cost information.) The fixed costs of Zapo 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. Requirement 1. What is the Zapo 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, units are sold to new customers, and units are sold to customer who bought upgrades. Data Table New Customers Upgrade Customers Selling price $ 225 $ 120 Variable costs Manufacturing $ 20 $ 20 60 80 25 Marketing $…
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Open the file CVP from the website for this book at cengagebrain.com. Enter the formulas where indicated on the worksheet. Enter your name in cell A1. Save the solution as CVP2 and print the worksheet. Also print your formulas. Check figures: Break-even point in sales dollars (cell C35), 1,616,000; Net income (cell C38), 95,000.