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Stand-alone revenue allocation, Funland is an amusement park complex in southern Florida. Funland is divided into three autonomous divisions: a water park, a superhero theme

Stand-alone revenue allocation, Funland is an amusement park complex in southern Florida. Funland is divided into three autonomous divisions: a water park, a superhero theme park with rides, and an animal park. In addition to selling a daily entrance ticket for each park, Funland has decided to sell a three day ticket that would allow entrance into each of the parks for one day. The ticket selling price and the costs associated with each entrant into a park are:

Park

Ticket Price

Daily Cost Per Entrant

Water Park

$40

$15

Superhero Theme Park

$60

$25

Animal Park

$20

$10

Three-day ticket

$90

1. Allocate the revenue from the three-day ticket to each park using the stand-alone method based on ticket price.

2. Allocate the revenue from the three-day ticket to each park using the stand-alone method based on cost per entrant.

3. Allocate the revenue from the three-day ticket to each park using the stand-alone method based on physical units (that is, number of tickets received for each park).

4. Which basis of allocation makes the most sense in this situation? Explain your answer.

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