(Solution) - P tale Parfum PP manufactures and sells upscale perfumes In recent -(2025 Original AI-Free Solution)

Paper Details

Pétale Parfum (PP) manufactures and sells upscale perfumes. In recent months, PP has started selling its products in bundled form, as well as in individual form. Sales in 2015 of three products that have been sold individually are as follows:
Retail Price Units Sold
Stand-alone
Fraîche .................................... $110 ...................... 20,000
Désarmer ..................................... 88 ..................... 37,500
Innocence ................................... 275 ..................... 20,000
Suite
Fraîche + Désarmer ........................ 165
Fraîche + Innocence ...................... 308
Required
1. Compute the weights for allocating revenues to each division for each of the bundled products using:
a. The stand-alone revenue-allocation method based on total revenues of individual products.
b. The incremental revenue-allocation method, with Innocence ranked 1; Désarmer, 2; and Fraîche, 3, based on retail prices of individual products. According to this ranking, the primary product in a suite has the highest rank, and so on.
2. Recalculate the allocation using the Shapley and the weighted Shapley value methods. What method would you recommend and why?