RequirementsDialog content starts1.Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following: a.The stand-alone revenue-allocation method based on selling price of each productb.The incremental revenue-allocation method, with Smarty ranked as the primary productc.The incremental revenue-allocation method, with Sublime ranked as the primary productd.The Shapley value method2.Of the four methods in requirement 1, which one would you recommend for allocating Paris's revenues to Smarty and Sublime? Explain. Paris Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Paris is now considering the sale of a bundled product called Dynamic Duo consisting ofSmarty, a men's case, and Sublime, a women's case. For the most recent year, Paris sold equal quantities of Smarty and Sublime and reported the following:E (Cick the icon to view the sales information.)Read the resuirements.Requirement 1. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following:a. The stand-alone revenue-allocation method based on selling price of each product.SmartySublimeStand-alone Data tableAB1ProductRetail Price2 Smarty35.003 Sublime65.004 Dynamic Duo (Smarty and Sublime)2$80.00%24%24

Answered: Requirements Dialog content starts 1.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Requirements

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1.	Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following:
	a.	The stand-alone revenue-allocation method based on selling price of each product
b.	The incremental revenue-allocation method, with Smarty ranked as the primary product
c.	The incremental revenue-allocation method, with Sublime ranked as the primary product
d.	The Shapley value method
2.	Of the four methods in requirement 1, which one would you recommend for allocating Paris's revenues to Smarty and Sublime? Explain.

Paris Corp sells Samsung 10 cases. It has a Men's Division and a Women's Division. Paris is now considering the sale of a bundled product called Dynamic Duo consisting of
Smarty, a men's case, and Sublime, a women's case. For the most recent year, Paris sold equal quantities of Smarty and Sublime and reported the following:
E (Cick the icon to view the sales information.)
Read the resuirements.
Requirement 1. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following:
a. The stand-alone revenue-allocation method based on selling price of each product.
Smarty
Sublime
Stand-alone

Data table
A
B
1
Product
Retail Price
2 Smarty
35.00
3 Sublime
65.00
4 Dynamic Duo (Smarty and Sublime)
2$
80.00
%24
%24

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