Carryon Company sells a product and a 12-month service package for that for a combined price of $800. Separately, the product and the service sell for $450 and $550, respectively. How much of the combined price should be allocated to the product?

Respuesta :

The part of the combined price allocated to the product is less than 50% which might be around 35-40%.

Explanation:

Since the price of the product all alone is $450 and the price of the service alone is $550, so the combined amount totals up to be nothing less than $1000. But the company under the discount and offer, offers the both things combined for $800.

This shows that the company is under some loss which it has to incur. The loss is of $200 under the discount to be offered to the clients which serves as the incentive to the customers.

According to the above equation, the combined price that should be allocated to the product is less than 50%.

What is the term combined price about?

A combined price is generally refers to as the purchase price of particular goods add the other purchase price of goods.

According to the question, the combined price would be $450+$550, that is not less than $1,000. But on the other hand, the company have a discount of $800.

Hence, the loss is of $200 under the discount to be offered to the clients that is considered as the incentive to the customers.

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