United Company blends and sells two products X&Y. each with different sales strategies, distribution channels, and product offerings. United is now considering the sale of a bundled product consisting of X&Y. For the most recent year, United reported retail price of X product $192, of Y product $448 and of (X+Y) $520. Using the incremental revenue-allocation method, with X ranked as the primary product, the revenue allocated to Y product is: а. $328. b. $364. С. $448. d. $192.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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United Company blends and sells two
products X&Y. each with different sales
strategies, distribution channels, and product
offerings. United is now considering the sale
of a bundled product consisting of X&Y. For
the most recent year, United reported retail
price of X product $192, of Y product $448
and of (X+Y) $520. Using the incremental
revenue-allocation method, with X ranked as
the primary product, the revenue allocated to
Y product is:
а.
$328.
b.
$364.
С.
$448.
d.
$192.
Transcribed Image Text:United Company blends and sells two products X&Y. each with different sales strategies, distribution channels, and product offerings. United is now considering the sale of a bundled product consisting of X&Y. For the most recent year, United reported retail price of X product $192, of Y product $448 and of (X+Y) $520. Using the incremental revenue-allocation method, with X ranked as the primary product, the revenue allocated to Y product is: а. $328. b. $364. С. $448. d. $192.
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