Question
Albers Company sells two or more language books as a single package. The owners are interested in individual product-profitability figures. Information pertaining to three bundled
Albers Company sells two or more language books as a single package. The owners are interested in individual product-profitability figures. Information pertaining to three bundled products and the stand-alone prices is as follows:
| Stand-Alone Selling Price | Cost |
| Package | Packaged Price |
Spanish Fun | $25 | $3.60 |
| 1.Spanish Fun & French Fun | $44 |
French Fun | $30 | $4.00 |
| 2.Spanish Fun & German Fun | $56 |
German Fun | $45 | $5.00 |
| 3. All three | $76 |
1. Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to French Fun in the package that contains all three products?
Group of answer choices
$30.00
$25.33
$22.80
$24.12
2. Using the Shapley Method, what revenue should be allocated to spanish Fun and French Fun in the first package (Spanish Fun & French Fun)?
Group of answer choices
Spanish $14, French $30
Spanish $25, French $19
Spanish $19.50, French $24.50
Spanish $22, French $22
3. Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Spanish Fun in the first package (Spanish Fun & French Fun)?
Group of answer choices
$22
$19
$20
$25
4. Using the incremental method, what amount of revenue will be allocated to German Fun in the package that contains all three products? Assume Spanish Fun is the primary product, followed by French Fun, and then German Fun.
Group of answer choices
$22.80
$21.00
$30.00
$25.33
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