Question
Questions 36-38 are based on the following: Tram Inc. and Drury Inc. are two small manufacturing companies that are considering leasing a machine together. If
Questions 36-38 are based on the following: Tram Inc. and Drury Inc. are two small manufacturing companies that are considering leasing a machine together. If Tram rents the machine on its own, it will cost $40,000. If Drury rents the machine on its own, it will cost $60,000. If they decide to rent the machine together, it will cost them 80,000. Flag question: Question 36 Question 362.5 pts What is Tram's cost under the stand-alone cost allocation method? Group of answer choices $48,000 $40,000 $30,000 $32,000 Flag question: Question 37 Question 372.5 pts What is Drury's cost under the incremental cost-allocation method assuming Tram is the primary party? Group of answer choices $30,000 $20,000 $40,000 $60,000
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