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Connie's Cupcake Shop and Chloe's Cakes each operate a bakery close to each other in a small town in Florida. If Connierents ovens on her
Connie's Cupcake Shop and Chloe's Cakes each operate a bakery close to each other in a small town in Florida. If Connierents ovens on her own, it will cost $46,000 If Chloe rents ovens on her own, it will cost $66,000. If they consolidate baking operations and share ovens, the total cost will be $84,000 Read the requirements Chloe Requirement 1. Calculate Connie's and Chloe's respective cost of the shared ovens under the stand-alone cost-allocation method Connie Chloe Stand-alone Requirement 2. Calculate Connie's and Chloe's respective cost of the shared ovens using the incremental cost-allocation method assuming (a) Connie is the primary party and (b) Chloe is the primary party, Connie Incremental Connie primary user Chloe primary user Requirement 3. Calculate Connie's and Chloe's respective cost of the shared ovens using the Shapley value method. Connie Chloe Shapley Requirement 4. Which method would you recommend Connie and Chloe use to share the cost of the ovens? Why? I would recommend the It is fairer than the Given its simplicity is likely more acceptable. V which the
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