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747:09 5948 - TODO of 33%D O + 7. Max's Movie Store encounters revenue-allocation decisions with its bundled product sales. Here, two or more of

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747:09 5948 - TODO of 33%D O + 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 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 Package Packaged Price Cost $2.00 $15 New & Older $20 New Releases Older Releases Classics $10 $8 $1.50 $1.25 New & Classics All three $17 $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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