=+Liz Maher, chief executive officer of the Recreation Division, recently asked the CEO of Shangri-La how her division would share in the

$1000 revenue from the package. The golf course was operating at 100% capacity. Under the getaway-package rules, participants who booked one week in advance were guaranteed access to the golf course. Maher noted that every ‘getaway’ booking would displace $375 of golf bookings. She emphasised that the high demand reflected the devotion of her team to keeping the golf course rated one of the ‘best 10 courses in the world’ by Golf Monthly. As an aside, she also noted that the Lodging and Food Divisions had to turn away customers during only ‘peak-season events such as the New Year period’.

Required 1 Using selling prices, allocate the $1000 getaway-package revenue to the three divisions using: