Question
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.
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