The correct answer is D. Third incremental product.
The incremental revenue-allocation method is a method of allocating revenue to products based on the incremental revenue that each product generates. The first incremental product is the product that generates the most incremental revenue, the second incremental product is the product that generates the second most incremental revenue, and so on.
In this case, the third ranked product in incremental revenue-allocation method is known as the third incremental product. This is because the third incremental product generates the third most incremental revenue.
The other options are incorrect because they do not accurately describe the third ranked product in incremental revenue-allocation method.
- Option A, primary product, is incorrect because the primary product is the product that generates the most revenue, not the third most revenue.
- Option B, first incremental product, is incorrect because the first incremental product is the product that generates the second most revenue, not the third most revenue.
- Option C, second incremental product, is incorrect because the second incremental product is the product that generates the second most revenue, not the third most revenue.