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Safe Zone Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Safe Zone is now considering the sale of a
Safe Zone Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Safe Zone 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, Safe Zone sold equal quantities of Smarty and Sublime and reported the following: : (Click the icon to view the sales information.) Read the requirements C. 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. Smarty Sublime Stand-alone Data Table A B 1 Product Retail Price $ 50.00 2 Smarty 3 Sublime 4 Dynamic Duo (Smarty and Sublime) $ 75.00 $ 115.00 Print Done Requirements 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 b. The incremental revenue-allocation method, with Smarty ranked as the primary product c. The incremental revenue-allocation method, with Sublime ranked as the primary product d. The Shapley value method 2. Of the four methods in requirement 1, which one would you recommend for allocating Safe Zone's revenues to Smarty and Sublime? Explain. Print Done
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