Four local businesses; a boat cruise company, a local hotel, a restaurant, and an ice-cream stand, have decided to offer a special night on the Rideau for $250 per couple. Night on the Rideau includes: dinner, a boat cruise, ice cream and a night at a hotel.

If purchased separately, this offer could cost $315 (hotel $150, boat cruise $50, restaurant $110, ice cream $5).

Required

1. Allocate the revenue of $250 between the three local businesses using the stand alone method.

2. Allocate the revenue of $250 between the three local businesses using the incremental revenue. Assume the order of preference is as follows:

1. Restaurant
2. Ice Cream
3. Boat Cruise
4. Hotel