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Lee Shu-yu Inc. produces and sells DVDs to business people and students who are planning K Information about the separate DVDs and the packages follows.

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Lee Shu-yu Inc. produces and sells DVDs to business people and students who are planning K Information about the separate DVDs and the packages follows. 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 DVD Selling Price market its new DVD in two different packages grouping the Reading Chinese Characters DVD with each of the other two language DVDs. Beginning Mandarin (BegM) S 60 Required Conversational Mandarin (ConM) 50 Reading Chinese Characters (RCC) 40 BegM + RCC 90 ConM + RCC 72 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 value method. (Round your answers to the nearest cent.) BegM RCC . X (a) Stand-alone 60 Required (b) Incremental BegM primary user 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 RCC primary user incremental method, and (c) the Shapley value method. (c) Shapley 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? Print Done

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