Question
A boat cruise company, a local hotel, a restaurant, and an ice-cream stand have each decided to offer a special night on the Rideau for
A boat cruise company, a local hotel, a restaurant, and an ice-cream stand have each decided to offer a special "night on the Rideau" for $250 per couple. "Night on the Rideau" includes dinner, a boat cruise, ice cream, and spending a night in a hotel.
If purchased separately, this offer could cost up to $315 (allocated: hotel $150, boat cruise $50, restaurant $110, ice cream $5).
Question #1: Allocate the revenue of $250 between the three local businesses using the stand-alone method.
Question #2: Allocate the revenue of $250 between the four local businesses using the incremental revenue. Assume the order of preference is as follows:Restaurant, Ice Cream, Boat Cruise, Hotel
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