=+5 Calculating the Shapley value mitigates this problem because each product is considered as a primary, first-incremental and second-incremental product. Assuming equal weights on all products, the revenue allocated to each product is an average of the revenues calculated for the product under these different assumptions. In the above example, the interested reader can verify that this will result in the following revenue assignments: FinanceMaster, $180; WordMaster, $87.50; and SpreadMaster, $112.50.

526 Chapter 13: Allocation of support-department costs, common costs and revenues M13_HORN3377_02_LT_C13.indd 526 2/09/13 3:53 PM Required