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Dong Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. It is introducing a third DVD, Reading Chinese Characters. It has also decided to market its new DVD in two different packages grouping the Reading Chinese Characters DVD with each of the other two language DVDs. Information about the separate DVDs and the packages follow. (Click the icon to view the information.) Requirement 3. Which method is most appropriate for allocating revenues among the DVDs? Why? Below are three situations, select the method(s) that would be most appropriate for each situation. The method(s) would be fair if the demand for the DVDs are approximately equal. The method might be slightly preferable here since it is simpler and easier to explain. The method would be appropriate if one DVD has a higher level of demand than the other DVD. In this situation, the dominant DVD would be sold anyway so it should receive its revenue, and the other DVD should receive the remainder. Dong Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. It is introducing a third DVD, Reading Chinese Characters. It has also decided to market its new DVD in two different packages grouping the Reading Chinese Characters DVD with each of the other two language DVDs. Information about the separate DVDs and the packages follow. (Click the icon to view the information.) Requirement 3. Which method is most appropriate for allocating revenues among the DVDs? Why? Below are three situations, select the method(s) that would be most appropriate for each situation. The method(s) would be fair if the demand for the DVDs are approximately equal. The method might be slightly preferable here since it is simpler and easier to explain. The method would be appropriate if one DVD has a higher level of demand than the other DVD. In this situation, the dominant DVD would be sold anyway so it should receive its revenue, and the other DVD should receive the remainder

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