Calculating Allocations for a Three-Item Package with Menu Per Person

A sales representative enters a basic package that includes a menu per person as a line item. The following table shows an example of how Siebel Hospitality might calculate revenue allocations for this type of package. Each item in the table has a quantity of 1.

Package Breakdown	List Price	Negotiated Price	Unit Net Price	Formula	Per Person Allocation
Package Per Person	50.00	50.00	50.00	None	Not applicable
— Event Order Item	20.00	Not applicable	Not applicable	(20/(20+10+25))*50	18.18
— Menu Item 1	10.00	Not applicable	Not applicable	(10/(20+10+25))*50	9.09
— Menu Per Person	25.00	Not applicable	Not applicable	(25/(20+10+25))*50	22.73
— — Menu Item 2	Not applicable	Not applicable	Not applicable	None	Not applicable
— — Menu Item 3	Not applicable	Not applicable	Not applicable	None	Not applicable

The contribution percentage for the menu per person is based on the list price of the menu per person. (However, if the menu per person is a split menu, Siebel Hospitality ignores it and does not include it in any calculations.)