i want to ask this question please... How to do number 9 and 10 ? Use the follow

Question

i want to ask this question please... How to do number 9 and 10 ?

Use the following information for questions 9 an d 10. Trio Company sells three products, Do, Ra, and Mi, for prices of $8, $7, and $5, respectively. They also offer combinations of the products for reduced overall prices. The following packages are available: () a package containing Do and Ra sells for $13.50, (2) a package of Do and Mi sells for $11.50, (3) a package containing Ra and Mi sells for $10.50, and (4) a package of all three products, Do, Ra, and Mi, sells for $17.00. 9. If Trio Company uses the stand-alone method (based on selling prices) to allocate revenues to products, the amount of revenues to be allocated to Do from a package of all three products, as described in (4) above, sold would be a. $8.00. b. $6.80. c. $5.95. d. $4.25. 10. If Trio Company uses the incremental-revenues allocation method and has designated Ra as the primary product, the amount of revenues from a bundled package of all three products to be allocated to Ra would be c. $5,95. d. $4.25. a. $7.00. b. $6.80

Explanation / Answer

Question - 9

Under stand alone method ............ Do = 17 * 8/20 = $ 6.80..........Option - b

Question - 10

Bundle package price (or) Suite price of all the 3 products is 17. This is more than the stand alone price of primary product Ra. Hence as per the rule of Incremental revenue allocation, 100% of stand alone revenue to be allocated to primary product in such case.

Hence Ra = $ 7 .............select - option - a

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