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Question - A customer purchased a set of high-end kitchen appliances (a fridge, a dishwasher and a range) for $16,000. The standalone prices of the appliances are $6,500 for the fridge, $3,500 for the dishwasher and $8,000 for the range.
Required -
a. How would the selling price be allocated to the different appliances?
b. Can you help me give a short explanation of the relevance of price allocation for the supplier.
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