DongDong

Inc. produces and sells DVDs to business people and students who are planning extended stays in

ChinaChina.

It has been very successful with two DVDs: Beginning

MandarinMandarin

and Conversational

MandarinMandarin.

It is introducing a third DVD, Reading

ChineseChinese

Characters. It has decided to market its new DVD in two different packages grouping the Reading

ChineseChinese

Characters DVD with each of the other two language DVDs. Read the requirements

LOADING...

.

Information about the separate DVDs and the packages follow.

DVD	Selling Price
Beginning Mandarin (BegM)		$75
Conversational Mandarin (ConM)		$75
Reading Chinese Characters (RCC)		$25
BegM + RCC		$80
ConM + RCC		$80

Requirement 1. Using the selling prices, allocate revenues from the

BegMBegM

+

RCCRCC

package to each DVD in that package using (a) the stand-alone method; (b) the incremental method, in either order; and (c) the Shapley value method. (Round your answers to the nearest cent.)

	BegM	RCC
(a) Stand-alone
(b) Incremental
BegM primary user
RCC primary user
(c) Shapley

Using the selling prices, allocate revenues from the BegMBegM + RCCRCC package to each DVD in that package using (a) the stand-alone method; (b) the incremental method, in either order; and (c) the Shapley value method.
2.	Using the selling prices, allocate revenues from the ConMConM + RCCRCC package to each DVD in that package using (a) the stand-alone method; (b) the incremental method, in either order; and (c) the Shapley value method.
3.	Which method is most appropriate for allocating revenues among the DVDs? Why? Please show your work