Determine the amount of the bundled product sell price

Reference no: EM13130197

A software business offers three software items for sale individually and as a bundled product. The bundled product contains one of each software item. The following data applies:
Unit sell price Unit cost
Word processing software $125 $18
Spreadsheet software $150 $20
Accounting software $225 $25
Bundled product $380

A. Determine the amount of the bundled product sell price that should be allocated to each individual software item using the stand alone method and individual sell prices as the weight.

B. Determine the amount of the bundled product sell price that should be allocated to each individual software item using the incremental method with individual sales items ranked as follows: (1) word processing (2) spreadsheet (3) accounting.

Reference no: EM13130197

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