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Carrie's Cupcake Shop and Jana's Cakes each operate a bakery close to each other in a small town in Florida. If Carrie rents ovens on
Carrie's Cupcake Shop and Jana's Cakes each operate a bakery close to each other in a small town in Florida. If Carrie rents ovens on her own, it will cost $30,000. If Jana rents ovens on her own, it will cost $50,000. If they consolidate baking operations and share ovens, the total cost will be $62,000. - - X Requirements 1. Calculate Carrie's and Jana's respective cost of the shared ovens under the stand-alone cost-allocation method. 2. Calculate Carrie's and Jana's respective cost of the shared ovens using the incremental cost-allocation method assuming (a) Carrie is the primary party and (b) Jana is the primary party 3. Calculate Carrie's and Jana's respective cost of the shared ovens using the Shapley value method. 4. Which method would you recommend Carrie and Jana use to share the cost of the ovens? Why
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