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7. 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

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7. 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 gures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows: Stand-Alone Cost Package Packaged Selling Price Price New Releases $200 New :51 Older $15 $20 Older _ Releases $1.50 Newt-E Classrcs $1.25 All three 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-al location 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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