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Requirement 1. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following: a. The stand-alone revenue-allocation
Requirement 1. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following: a. The stand-alone revenue-allocation method based on selling price of each product. Stand-alone Smarty $ 72 $ Sublime 108 b. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the incremental revenue-allocation method, with Smarty ranked as the primary product. Smarty Sublime Incremental Smarty primary user $ 80 $ 100 c. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the incremental revenue-allocation method, with Sublime ranked as the primary product. Incremental Sublime primary user Smarty Sublime Clear Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Clear is now considering the sale of a bundled product called Dynamic Duo consisting of Smarty, a men's case, and Sublime, a women's case. For the most recent year, Clear sold equal quantities of Smarty and Sublime and reported the following: A 1 Product 2 Smarty B Retail Price 6A $ 80.00 3 Sublime 69 $ 120.00 4 Dynamic Duo (Smarty and Sublime) $ 180.00
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