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Author Question: Max's Movie Store encounters revenue-allocation decisions with its bundled product sales. Here, two ... (Read 85 times)

Beheh

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Max's Movie Store encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the movie videos are sold as a single package. Managers at Max's are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows: 

Stand-Alone Selling Price,CostPackagePackaged Price
New Releases$15$2.00New & Older$20
Older Releases$10$1.50New & Classics$17
Classics$8$1.25All three$25
Required: 
a.With selling prices as the weights, allocate the $25 packaged price of "All Three" to the three 
videos using the stand-alone revenue-allocation method. 

b.Allocate the $25 packaged price of "All Three" to the three types of videos using the incremental 
revenue-allocation method. Assume New Releases is the primary product, followed by Older Releases, and then Classics.


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Marked as best answer by Beheh on Mar 6, 2021

nguyenhoanhat

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Beheh

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Reply 2 on: Mar 6, 2021
:D TYSM


dantucker

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Reply 3 on: Yesterday
Excellent

 

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