Revenue allocation, bundled products, additional complexities (continuation of 16-17). The individual items in the getaway package deal

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Revenue allocation, bundled products, additional complexities (continuation of 16-17).

The individual items in the “getaway package” deal at Pebble Resorts are not frilly used by each guest. Assume that 10% ofthe “getaway package” users in its first month do not use the golfing option, while 5% do not use the food option. The lodging option has a 100% usage rate.

Required How should Pebble Resorts recognize this nonuse factor in its revenue sharing of the $770 package across the Lodging, Food, and Recreation divisions?

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Cost Accounting A Managerial Emphasis

ISBN: 9780131971905

4th Canadian Edition

Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall

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