Question

In: Accounting

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

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

China. It has been very successful with two​ DVDs: Beginning Mandarin and Conversational Mandarin.

It is introducing a third​ DVD, Reading Chinese Characters. It has decided to market its new DVD in two different packages grouping the Reading Chinese Characters DVD with each of the other two language DVDs.

information about the separate DVDs and the packages follow.

DVD

Selling Price

Beginning Mandarin (BegM)

$48

Conversational Mandarin (ConM)

$128

Reading Chinese Characters (RCC)

$32

BegM + RCC

$60

ConM + RCC

$150

1.

Using the selling​ prices, allocate revenues from the BegM + RCC 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.

2.

Using the selling​ prices, allocate revenues from the ConM + RCC

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?

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

WangWang Inc. produces and sells DVDs to business people and students who are planning extended stays...
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...
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set...
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $93,330. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company...
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set...
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 8,900 DVDs and 4,450 equipment sets. Information on the two products is as follows:    DVDs    Equipment Sets Price    $7.80    $25.40 Variable cost per unit    $3.60 $15.40 Total fixed cost is $60,720. Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity...
what would you suggest business people who are planning a visit or stay in a country...
what would you suggest business people who are planning a visit or stay in a country to build trade?
Multiple-Product Break-even, Break-Even Sales Revenue CherryBlossom Products Inc. produces and sells yoga-training products:how-to DVDs...
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $76,680. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...
Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells...
Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases tapes from Globe at $25.00 per DVD; DVDs are shipped in packages of 60. Globe pays all incoming freight, and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality. Annual demand is 312,000 DVDs at a rate of 6,000 DVDs per week. DVD Mart earns 15% on its cash investments. The purchase-order...
Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells...
Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases DVDs from Globe at $ 25 per? DVD; DVDs are shipped in packages of 60. Globe pays all incoming? freight, and DVD Mart does not inspect the DVDs due to? Globe's reputation for high quality. Annual demand is 320,000 DVDs at a rate of 6,600 DVDs per week. DVD Mart earns 11?% on its cash investments. The...
Sophie has a business where she sells DVDs for $15 each. The average variable cost of...
Sophie has a business where she sells DVDs for $15 each. The average variable cost of production is $10 per unit. The average total cost of production is $16. What should she do in the short run? a. She should continue operating since the business is earning an economic profit. b. She should shut down because the sales are NOT covering the average total cost of production. c. She should shut down since the business is earning zero economic profit....
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs...
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $74,460. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs...
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $101,750. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT