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.

Information about the separate DVDs and the packages follow.

Beg. Mandarin $42

Conversational Mandarin $112

Reading Chinese Characters $28

Beg =+ RCC $50

ConM+ RCC $130

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

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?