Axiom Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each with different sales strategies, distribution channels, and product offerings. Axiom is now considering the sale of a bundled product called Sync$,$ consisting of one bottle of Him, a men's cologne, and one bottle of Her, a women's perfume, two of Axiom's very successful products. Axiom sells equal quantities of Him and Her perfume. For the most recent year, Axiom reported the following:

$($Click the icon to view the sales information.$)$

Read the requirements.

Requirement $1$a$.$ Allocate revenue from the sale of each unit of Sync to Him and Her using the following:

a$.$ The stand$-$alone revenue$-$allocation method based on selling price of each product. $($Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.$)$

Him

Her

Stand$-$alone

Requirement $1$b$.$ Allocate revenue from the sale of each unit of Sync to Him and Her using the incremental revenue$-$allocation method, with Him ranked as the primary product.

Him

Her

Incremental

Him primary user

Requirement $1$c$.$ Allocate revenue from the sale of each unit of Sync to Him and Her using the incremental revenue$-$allocation method, with Her ranked as the primary product.

Him

Her

Incremental

Her primary user

Requirement $1$d$.$ Allocate revenue from the sale of each unit of Sync to Him and Her using the Shapley value method, assuming equal unit sales of Him and Her. $($Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.$)$

Him

Her

Shapley

Requirement $2.$ Of the four methods in requirement $1,$ which one would you recommend for allocating Sync$\text{'}$s revenues to Him and Her? Explain.

I would recommend the

It is fairer than the which It allocates costs in a manner that is close to the costs allocated under the but takes a more comprehensive view of the common cost allocation problem by considering

Axiom Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each with different sales strategies, distribution channels, and product offerings. Axiom is now considering the sale of a bundled product called Sync$,$ consisting of one bottle of Him, a men's cologne, and one bottle of Her, a women's perfume, two of Axiom's very successful products. Axiom sells equal quantities of Him and Her perfume. For the most recent year, Axiom reported the following:

$($Click the icon to view the sales information.$)$

Read the requirements.

Requirement $1$a$.$ Allocate revenue from the sale of each unit of Sync to Him and Her using the following:

a$.$ The stand$-$alone revenue$-$allocation method based on selling price of each product. $($Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.$)$

Requirement $1$b$.$ Allocate revenue from the sale of each unit of Sync to Him and Her using the incremental revenue$-$allocation method, with Him ranked as the primary product.

Him Her

Incremental

Him primary user

Requirement $1$c$.$ Allocate revenue from the sale of each unit of Sync to Him and Her using the incremental revenue$-$allocation method, with Her ranked as the primary product.

Him Her

Incremental

Her primary user

Requirement $1$d$.$ Allocate revenue fror and Her. $($Do not round intermediary ca

Him

Shapley

Requirement $2.$ Of the four methods in

I would recommend the

It is fairer than the

manner that is close to the costs alloca problem by considering

Data table

Product

Retail Price

Him

Her

$40\mathrm{.}00$

Sync $($Him and Her$)$

$60\mathrm{.}00$

$90\mathrm{.}00$

lue method, assuming equal unit sales of Him t dollar.$)$

c$\text{'}$s revenues to Him and Her? Explain.

It allocates costs in a

sive view of the common cost allocation