The local meat locker processes a variety of different cuts of meat. A typical steak would cost about $15, while ribs would be closer to $18. They also sell ground beef, roasts and tri-tips. The meat locker charges approximately $5 for the ground beef, $12 for the roast, and $20 for the tri-tips. The manager of the meat locker would like to offer a special promotion to attract more customers. He wants to offer one package of each (steak, ribs, ground beef, roast, and tri-tips) for $60. Instructions
a.To sort out the revenues from the promotion, the manager decides to use the incremental method to allocate the transaction price. Rank the products and determine what portion should be allocated to each product.
b.If the manager uses the stand-alone method instead, how much revenue would be recorded for each product? (Do not round intermediary calculations. Round the final answers to the nearest cent.)
c.Determine the difference between the two methods.

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The Answer of The local meat locker processes a variety of different cuts of meat. A typical steak would cost about $15, while ribs would be closer to $18. They also sell ground beef, roasts and tri-tips. The meat locker charges approximately $5 for the ground beef, $12 for the roast, and $20 for the tri-tips. The manager of the meat locker would like to offer a special promotion to attract more customers. He wants to offer one package of each (steak, ribs, ground beef, roast, and tri-tips) for $60. Instructions
a.To sort out the revenues from the promotion, the manager decides to use the incremental method to allocate the transaction price. Rank the products and determine what portion should be allocated to each product.
b.If the manager uses the stand-alone method instead, how much revenue would be recorded for each product? (Do not round intermediary calculations. Round the final answers to the nearest cent.)
c.Determine the difference between the two methods.

The Local Meat Locker Processes a Variety of Different Cuts