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Cheng Inc procuces and sells DVDS to business people and students who are planning extended stays in China. It has been very
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Answer #1
Allocation of revenues
Beg M RCC
(a) Stand-alone 60 20 The Prices are 75 and 25 so the ratio is 3:1
(b) Incremental
BegM Primary user 75 5
RCC Primary user 55 25
(c) Shapley 60 20
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