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Preview division divides M proportional to preview demand, i.e., each SKU n 2N gets fraction
This method is included because it is used by the case company, in combination with Method 2. Preview division was previously pro posed by Chambers and Eglese (1988). However, they restrict the method to grouping SKUs per ‘product line', while here it can be applied for any chosen way of grouping.
A owns all of the stock of X. The stock's basis is $100. X has a total of current and accumulated earnings and profits of $50. X distributes $200 cash to A "with respect to his
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