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Answer the Following Questions Using the Information Below:
Electro Corp

Question 134

Multiple Choice

Answer the following questions using the information below:
Electro Corp sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.
 Refrigerator  Full-size Freezer  Packaged Price  Selling price $800$400$1,000 Manufactuing cost per unit $600$200 Stand-alone product revenues $1,200,000$800,000\begin{array} { | l | c | c | c | } \hline & \text { Refrigerator } & \text { Full-size Freezer } & \text { Packaged Price } \\\hline \text { Selling price } & \$ 800 & \$ 400 & \$ 1,000 \\\hline \text { Manufactuing cost per unit } & \$ 600 & \$ 200 & \\\hline \text { Stand-alone product revenues } & \$ 1,200,000 & \$ 800,000 & \\\hline\end{array}
-Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation,what amount will be allocated to the refrigerator?


A) $770.00
B) $672.50
C) $720.00
D) $750.00

Correct Answer:

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