Burger Queen offers a lunch meal deal for its customers. The customer will get a burger, fry, soft drink, and ice cream for $5. If the customer were to buy each item individually, the cost would be broken down as follows: Burger $2.50 Fry $1.25 Soft Drink $1.00 Ice Cream $1.50 Using the incremental cost allocation, how must of the transaction price should be allocated to the burger? (do not round intermediary calculations)   Question options:   a)  $2.50.   b)  $2.10.   c)  $2.08.   d)  $2.48.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
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Burger Queen offers a lunch meal deal for its customers. The customer will get a burger, fry, soft drink, and ice cream for $5. If the customer were to buy each item individually, the cost would be broken down as follows:

Burger $2.50

Fry $1.25

Soft Drink $1.00

Ice Cream $1.50

Using the incremental cost allocation, how must of the transaction price should be allocated to the burger? (do not round intermediary calculations)

 

Question options:

 

a) 

$2.50.
 

b) 

$2.10.
 

c) 

$2.08.
 

d) 

$2.48.
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