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Golf Instruction International sells golfing instructional DVDs. They use famous professional golfers in each instructional DVD. Each professional golfer is paid a royalty ( a
Golf Instruction International sells golfing instructional DVDs. They use famous | ||||||
professional golfers in each instructional DVD. Each professional golfer is paid a | ||||||
royalty ( a percentage of the revenue ). Sales for the month of November are | ||||||
as follows: | ||||||
SELLING | DVDs | ROYALTY | PROFESSIONAL | |||
DVD | PRICE | SOLD | PAID | GOLFER | ||
putting(PUT) | $25 | 18,000 | 12% | Brooke(putting) | ||
driving(DRI) | $28 | 39,000 | 15% | Jordan(driving) | ||
chipping(CHI) | $33 | 25,000 | 17% | Phil(chipping) | ||
PUTandDRI | $44 | 5,000 | Brooke & Jordan | |||
PUTandCHI | $49 | 17,000 | Brooke & Phil | |||
DRIandCHI | $58 | 12,000 | Jordan & Phil | |||
PUTandDRIandCHI | $68 | 9,000 | Brooke & Jordan &Phil | |||
REQUIRED: | ||||||
1. Allocate the bundled unit selling prices to the individual products using the | ||||||
stand-alone revenue allocation method using the unit selling price. | ||||||
2. Calculate the total royalty paid to Jordan in November. | ||||||
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