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Data table Selling Price EA 42 $ 112 DVD Beginning Mandarin (BegM) Conversational Mandarin (ConM) Reading Chinese Characters (RCC) BegM + RCC ConM+ RCC $

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Data table Selling Price EA 42 $ 112 DVD Beginning Mandarin (BegM) Conversational Mandarin (ConM) Reading Chinese Characters (RCC) BegM + RCC ConM+ RCC $ 28 $ 50 $ 130 Yang Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. It is introducing a third DVD, Reading Chinese Characters. It has also decided to market its new DVD in two different packages grouping the Reading Chinese Characters DVD with each of the other two language DVDs. Information about the separate DVDs and the packages follow. Click the icon to view the information.) Read the requirements Requirement 1. Using the selling prices, allocate revenues from the BegM + RCC package to each DVD in that package using (a) the stand-alone method; (b) with BegM and RCC in turn as the primary product. (Round your answers to the nearest cent.) BegM RCC (a) Stand-alone (b) Incremental: BegM primary user (b) Incremental: RCC primary user Requirement 2. Using the selling prices, allocate revenues from the ConM+ RCC package to each DVD in that package using (a) the stand-alone method; (b) the incremental method, with ConM and RCC in turn as the primary product. (Round your answers to the nearest cent.) ConM RCC (a) Stand-alone (b) Incremental: ConM primary user (b) Incremental: RCC primary user Requirement 3. Which method is most appropriate for allocating revenues among the DVDs? Why? Below are three situations, select the method(s) that would be most appropriate for each situation The method(s) would be fair if the demand for the DVDs are approximately equal. The v method might be slightly preferable here since it is simpler and easier to explain. The V method would be appropriate if one DVD has a higher level of demand than the other DVD. In this situation, the dominant DVD would be sold anyway so it should receive its revenue, and the other DVD should receive the remainder

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