Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saanich Recreation and Parks wants to entice Camosun students to use the Saanich recreation facilities located near the Interurban campus. Saanich Recreation and Parks decides

Saanich Recreation and Parks wants to entice Camosun students to use the Saanich recreation facilities located near the Interurban campus. Saanich Recreation and Parks decides to offer bundled products to the students and will bundle two of the recreation activities as a single package. Managers at Saanich Recreation and Parks are keenly interested in individual product-profitability figures. Information pertaining to bundled products and the stand-alone prices of its individual products is as follows:

Stand-Alone Selling Prices

One pass for swimming sessions at Commonwealth Pool

One pass for a number of visits to the Saanich Gym at Commonwealth Centre

Stand Alone Price

$25

$30

Bundled Package Selling Price

Package Deal

One pass for swimming sessions at Commonwealth Pool

One pass for visits to the Saanich Gym at Commonwealth Centre

Packaged

Price

Package Deal

Included

Included

$44

Required: Answer the following multi-choice questions on the Excel Workbook or in the space provided below:

a. Assume the swimming sessions are the primary product, followed by the gym visits. Using the incremental method, calculate the revenue allocation for the swimming session pass in the Package Deal.

b. Assume the swimming sessions are the primary product, followed by the gym visits. Using the stand-alone method, calculate the allocation of the packaged price for the swimming session pass in the Package Deal, using stand-alone selling prices as the base.

c. Using the Shapley method, calculate the revenue allocation for the swimming session pass in the Package Deal.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Management Science

Authors: Bernard W. Taylor

11th Edition

132751917, 978-0132751919

More Books

Students also viewed these Accounting questions

Question

b. What is the persons job title?

Answered: 1 week ago