1)
Items | standalone price | Allocation proportion | revenue allocated |
PC Tower | 1007 | 1007/1900= .53 | 1800*.53= 954 |
Monitor | 285 | 285/1900 = .15 | 1800*.15= 270 |
Color Laser print | 608 | 608/1900 =.32 | 1800*.32= 576 |
1900 | 1800 |
2)
Items | standalone cost | Allocation proportion | revenue allocated |
PC Tower | 460 | 460/1000 =0.46 | 1800*0.46=828 |
Monitor | 190 | 190/1000 =0.19 | 1800*0.19=342 |
Color Laser print | 350 | 350/1000 =0.35 | 1800*0.35=630 |
1000 | 1800 |
3)
Items | Physical quantity | Allocation proportion | revenue allocated |
PC Tower | 1 | 0.33 | 600 |
Monitor | 1 | 0.33 | 600 |
Color Laser print | 1 | 0.33 | 600 |
3 |
1800 |
4)
Sharing on the basis of revenue makes the most sense. Using this method each division takes a uniform percentage decrease in the revenue received regardless of the cost of the division's individual product
Orce Solutions, Inc., sela computer hardware to end consumers. The CX30 s sold as a "bundle",...
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