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Clear Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Clear is now considering the sale of a bundled product
Clear Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Clear is now considering the sale of a bundled product called Dynamic Duo consisting of Smarty, a men's case, and Sublime, a women's case. For the most recent year, Clear sold equal quantities of Smarty and Sublime and reported the following: @ (Click the icon to view the sales information.) Requirement 1. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following: a. The stand-alone revenue-allocation method based on selling price of each product. Smarty Sublime Data table Stand-alone b. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the incremental revenue-allocation method, with Smarty ranked as the primary product. Smarty Sublime A B Incremental Product Retail Price [Smarty $ 3000 Sublime 70.00 Dynamic Duo (Smarty and Sublime) $ 100.00 Smarty primary user c. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the incremental revenue-allocation method, with Sublime ranked as the primary product. Smarty Sublime Incremental Sublime primary user d. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the Shapley value method. Smarty Sublime Shapley Requirement 2. Of the four methods in requirement 1, which one would you recommend for allocating Clear's revenues to Smarty and Sublime? Explain. I would recommend the . The recommended method is fairer than the V| which V|. It allocates revenues in a manner that is close to the revenues allocated under the but takes a more comprehensive view of the revenue allocation problem by considering
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