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Inc. and Vilk Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet
Inc. and Vilk Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Trask needs the machine for 700 hours and Vilk needs it for 450 hours. If each company rents the machine on its own, the fee will be $65 per hour of usage. If they rent the machine together, the fee will decrease to $55 per hour of usage.
1. Calculate Trask's and Vilk's respective share of fees under the stand-alone cost-allocaton methed 2. Calculate Trask's and Vilk's respective share of fees using the incremental cost allocation method assuming (a) Trask renked as the primary party and (b) Vik ranked as the primiary parly. 3. Calculate Trask's and Vilk's respective share of fees using the Shapley value method. 4. Which method would you recommend Trask and Vilk use to share the fees? Requirement 1. Calculate Trask's and Vilk's respective share of fees under the stand alone cost allocation method. (Do not round intermediary calculations. Only round the ainount you input in the cell to the nearesi dollat.)Step by Step Solution
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