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Bob and Evan are students at Berkeley College. They share an apartment that is owned by Evan. Evan is considering subscribing to an Internet provider
Bob and Evan are students at Berkeley College. They share an apartment that is owned by Evan. Evan is considering subscribing to an Internet provider that has the following packages available: Package Per Month A. Internet access $ 60 Bob spends most of his time on the Internet ("everything can be found online now"). Evan prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the $70 total package is a "win-win situation. Requirements 1. Allocate the $70 between Bob and Evan using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. 2. Which method would you recommend they use and why? B. Phone services 15 C. Internet access + phone services 70 Requirement 1. Allocate the $70 between Bob and Evan using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. (Round your answers to the nearest cent.) Costs allocated to Bob Evan (a) Stand-alone (b) Incremental Bob primary user Evan primary user (c) Shapley
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