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Collaborative Learning Problem
15-35 (20–25 min.) Revenue allocation, bundled products.
Lodging $320 × 2 = $ 640
Recreation $150 × 2 = 300
Food $ 80 × 2 = 160
$1,100
$640 $800 0.582 $800 $466
d. The weights may change frequently if unit prices are constantly changing. This is not so much a criticism
as a reflection that the marketplace may be highly competitive.
The pros of the incremental method include the following:
a. It has the potential to reflect that some products in the bundle are more highly valued than others. Not all
products in the bundle have a similar “write-down” from unit list prices. Ensuring this “potential pro”
becomes an “actual pro” requires that the choice of the primary product be guided by reliable evidence
