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dxpayne dxpayne
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6 years ago
Manny's DVD Store encounters revenue allocation decisions with its bundled product sales. Here, two or more of the DVDs are sold as a single package. Managers at Max's are keenly interested in individual product profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows:

   Stand-Alone Selling Price   Cost      Package   Packaged
Price
New Releases   $15   $2.00      New & Old   $20
Older Releases   $10   $1.50      New & Classics   $17
Classics   $8   $1.25      All three   $25

Required:
a.    With cost as the weights, allocate the $17 packaged price of "New & Classics" using the stand-alone revenue allocation method.
b.   Allocate the $17 packaged price of "New & Classics" using the incremental    revenue allocation method. Assume New Releases is the primary product, followed by Older    Releases, and then Classics.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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GarretAGarretA
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Without mathematics, there's nothing you can do. Everything around you is mathematics. Everything around you is numbers.

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6 years ago
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