Shaulo- Inc. produces and sells DVDs to business people and students who are planning extended stays in . It has been very successful with two DVDs: Beginning and Conversational . It is introducing a third DVD, Reading Chinese Characters. It has decided to market its new DVD in two different packages grouping the Reading Characters DVD with each of the other two language DVDs.

Information about the separate DVDs and the packages follows.

DVD	Selling Price
Beginning Mandarin (BegM)		$60
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 (c) the Shapley value method. (Round your answers to the nearest cent.)

	BegM	RCC
(a) Stand-alone
(b) Incremental
BegM primary user
RCC primary user
(c) Shapley

Required 1. Using the selling prices, allocate revenues from the + package to each DVD in that package using (a) the stand-alone method, (b) the incremental method, and (c) the Shapley value method. 2. Using the selling prices, allocate revenues from the + 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?