Q1. FOR DOG INC. AND CAT INC., Calculate fogs respective share of fees under the incremental cost-allocation method assuming cat is the primary party?

Q2. FOR DOG INC. AND CAT INC. CALCULATE FOGS RESPECTIVE SHARE OF FEES UNDER THE STAND ALONE COST ALLOCATION METHOD?

WITH SOLUTIONS PLEASE

Dog Inc. and Cat Inc. are two small per food manufactures that share the same building. The two companies are considering leasing a packaging machine together. The machine's rent is based on volume. If Dog rents the machine on it own, it will cost $260,000 per year. If Cat rents the machine alone, it will cost $140.000. If they rent the machine together, the total costs will be discounted to $360,000. For the following multi-choice question(s), submit your written answers from the multi-choice questions here. 3 marks per multi-choice question for showing correct work