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Designer Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Designer is now considering the sale of a bundled product
Designer Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Designer 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, Designer sold equal quantities of Smarty and Sublime and reported the following: (Click the icon to view the sales information.) Read the 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. Requirements 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 b. The incremental revenue-allocation method, with Smarty ranked as the primary product c. The incremental revenue-allocation method, with Sublime ranked as the primary product d. The Shapley value method 2. Of the four methods in requirement 1 , which one would you recommend for allocating Designer's revenues to Smarty and Sublime? Explain. Data table
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