Jeana's Cupcake Shop and Jody's Cakes each operate a bakery close to each other in a small town in Florida. If

Jeana rents ovens on her own, it will cost $40,000. If Jody rents ovens on her own, it will cost $60,000. If they consolidate baking operations and share ovens, the total cost will be $80,000.

Requirement 1. Calculate

Jeana's and Jody's respective cost of the shared ovens under the stand-alone cost-allocation method.

	Jeana	Jody
Stand-alone	32000	48000

Requirement 2.

Calculate Jeana's and Jody's respective cost of the shared ovens using the incremental cost-allocation method assuming (a)Jeana is the primary party and (b)Jody is the primary party.

	Jeana	Jody
Incremental
Jeana primary user
Jody primary user

Thank you