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Questions 3638 are based on the following: Tram Inc. and Drury Inc. are two small manufacturing companies that are considering leasing a machine together. If

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Questions 3638 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 . What is Drury's cost under the incremental cost-allocation method assuming Tram is the primary party? $20,000$60,000$30,000$40,000 Question 38 2.5pts Which of the following is true? Drury would prefer the stand-alone cost allocation method to the Shapley value cost allocation method Both companies would be better off using the Shapley value cost allocation method compared with the stand-alone cost allocation method Drury's cost under the Shapley value method would be $60,000 Tram would prefer the stand-alone cost allocation method to the Shapley value cost allocation method

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