Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Jul 2017 My Price 10.00

Yves Parfum Company

Revenue allocation, bundled products. Yves Parfum Company blends and sells designer fragrances. It has a Men’s Fragrances Division and a Women’s Fragrances Division, each with different sales strategies, distribution channels, and product offerings. Yves is now considering the sale of a bundled product consisting of a men’s cologne and a women’s perfume. For the most recent year, Yves reported the following:


Required
1. Allocate revenue from the sale of each unit of L’Amour to Monaco and Innocence using the following:
a. The stand-alone revenue-allocation method based on selling price of each product
b. The incremental revenue-allocation method, with Monaco ranked as the primary product
c. The incremental revenue-allocation method, with Innocence ranked as the primary product
d. The Shapley value method, assuming equal unit sales of Monaco and Innocence
2. Of the four methods in requirement 1, which one would you recommend for allocating L’Amour’s revenues to Monaco and Innocence?Explain.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Jul 2017 11:07 AM My Price 10.00

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