Jacks shoe store encounters revenue allocation decisions with its bundled product sales. Here, two or more of the Shoe's are sold as a single package. Managers at Jack's are keenly interested in individual product profitability figures. Information pertaining to its three bundled products and the standalone selling prices of its individual products is as follows:

Question:

Allocate the $750 packaged price of "All Three" to the three types of Shoes using the incremental revenue allocation method. Assume New Releases is the primary product, followed by Older Releases and Classics.

	Stand-Alone Selling Price	cost		Package	Packaged Price
New Releases	450	220		New & Old	600
Older Releases	300	115		New & Classics	510
Classics	24	112.5		All three	750