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= Homework: Ch17 Ho... Question 1, Exercise 17-... Part 1 of 3 HW Score: 0%, 0 of 3 points Points: 0 of 1 Save Yin
= Homework: Ch17 Ho... Question 1, Exercise 17-... Part 1 of 3 HW Score: 0%, 0 of 3 points Points: 0 of 1 Save Yin Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. It is introducing a third DVD, Reading Chinese Characters. It has decided to market its new DVD in two different packages grouping the Reading Chinese Characters DVD with each of the other two language DVDs. Required Information about the separate DVDs and the packages follows. DVD Selling Price Beginning Mandarin (BegM) $ 72 Conversational Mandarin (ConM) 112 Reading Chinese Characters (RCC) 48 BegM + RCC ConM + RCC 140 100 Requirement 1. Using the selling prices, allocate revenues from the BegM + RCC package to each DVD in that package using (a) the stand-alone method, (b) the incremental method, 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 - Required 1. Using the selling prices, allocate revenues from the BegM + RCC package to each DVD in that package using (a) the stand-alone method, (b) the incremental method, and (c) the Shapley value method. 2. Using the selling prices, allocate revenues from the ConM + RCC 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
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