Studio Inc. produces and sells software to students wishing to learn German. It has been very successful with two products: Beginning German and Conversational German. It is introducing a third product line: German for Business. It has decided to market its new product line in two different packages grouping German for Business with each of the other two language products and all three products together. Information about the separate software products and the packages follow.

Software	Selling Price
Beginning German	$100
Conversational German	$120
German for Business	$150
Beginning German and German for Business	$180
Conversational German and German for Business	$240
Beginning German, Conversational German and German for Business	$300

1. Using the selling prices, allocate revenues from the Beginning German and German for Business Package to each software in that package using (a) the stand-alone method and (b) the incremental method (lowest first).
2. Do the same calculations as in part 1 for the package with Beginning German, Conversational German and German for Business.
3. Explain which method is most appropriate for allocating revenues among the software? Why? (Word limit: 100 words)