Movement Athletics (MA) sells exercise DVDs through television infomercials. It uses a well-known…

Movement Athletics (MA) sells exercise DVDs through television infomercials. It uses a well-known sports celebrity in each DVD. Each celebrity receives a share (typically varying between 10% and 25%) of the revenue from the sale of their DVD. In recent months, MA has started selling its exercise DVDs in bundled form as well as in individual form. Typically, the bundled products are offered to people who telephone for a specific DVD after watching an infomercial. Each infomercial is for a specific exercise DVD. As a marketing experiment, MA has begun to advertise the bundled product at the end of some infomercials in a select set of markets. Sales in 2015 of three DVDs that have been sold individually, as well as in bundled form, are as follows:

Required

1. What royalty would be paid to the celebrity on each DVD for the individual sales in 2015?

2. What royalty would be paid to each celebrity for the bundled product sales in 2015 using:

a. The stand-alone revenue-allocation method (with average retail price as the weight)?

b. The incremental revenue-allocation method (with SuperArms ranked 1, SuperAbs ranked 2, and SuperLegs ranked 3)?

3. Discuss the relative merits of the two revenue-allocation methods in requirement 2.

4. Assume the incremental revenue-allocation method is used. What alternative approaches could be used to determine the sequence in which the bundled revenue could be allocated to individual products?

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!