WangWang

Inc. produces and sells DVDs to business people and students who are planning extended stays in

ChinaChina.

It has been very successful with two DVDs: Beginning

MandarinMandarin

and Conversational

MandarinMandarin.

It is introducing a third DVD, Reading

ChineseChinese

Characters. It has decided to market its new DVD in two different packages grouping the Reading

ChineseChinese

Characters DVD with each of the other two language DVDs. Required

LOADING...

Information about the separate DVDs and the packages follows.

DVD	Selling Price
Beginning Mandarin (BegM)		$48
Conversational Mandarin (ConM)		128
Reading Chinese Characters (RCC)		32
BegM + RCC		60
ConM + RCC		150

Requirement 1. Using the selling prices, allocate revenues from the

BegMBegM

+

RCCRCC

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

.	1.Using the selling prices, allocate revenues from the BegMBegM + RCCRCC 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 ConMConM + RCCRCC 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?