DXand sells designer fragrances. It has a Mens Fragrances Division and a Womens

Fragrances Division, each with different sales strategies, distribution channels, and

product offering. DXand is now considering the sale of a bundled product consisting of a

mens cologne and a womens perfume. For the most recent year, DXand reported the

following:

Product

Selling price Monaco (mens cologne) RM80

Innocence (womens

RM120 perfume) LAmour (Monaco + RM180

Innocence)

Allocate revenue from the sale of each unit of LAmour to Monaco and Innocence using:

a. The stand-alone revenue-allocation method based on selling price of each product.

b. The incremental revenue-allocation method, with Monaco ranked as the primary product

c. The incremental revenue-allocation method, with Innocence ranked as the primary

product