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Best Business has three departments that sell furniture: the Sofa Department, the Easy Chair Department, and the Coffee Table Department. These products are sold individually
Best Business has three departments that sell furniture: the Sofa Department, the Easy Chair Department, and the Coffee Table Department. These products are sold individually and in a bundle. Best Business sells roughly equal quantities of the three products. Managers of the three departments are evaluated on the performance of their individual departments. The individual selling prices and per unit costs of the products are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. Allocate the revenue from the furniture bundle purchase to each of the products using the stand-alone method based on the individual selling price per unit. (Enter the allocation proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest whole dollar.) Requirements 1. Allocate the revenue from the furniture bundle purchase to each of the products using the stand-alone method based on the individual selling price per unit. 2. Allocate the revenue from the furniture bundle purchase to each of the products using the stand-alone method based on cost per unit. 3. Allocate the revenue from the furniture bundle purchase to each of the products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). 4. Which basis of allocation makes the most sense in this situation? Explain your answer. Data table
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