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Steve and Ed are students at Berkeley College. They share an apartment that is owned by Ed. Ed is considering subscribing to an Internet provider
Steve and Ed are students at Berkeley College. They share an apartment that is owned by Ed. Ed is considering subscribing to an Internet provider that has the following packages available: Package Per Month A. Internet access $ 80 B. Phone services 20 C. Internet access + phone services 90 Steve spends most of his time on the Internet ("everything can be found online now"). Ed prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the 590 total package is a "win-win situation. Requirements 1. Allocate the 590 between Steve and Ed using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. 2. Which method would you recommend they use and why? Requirement 1. Allocate the $90 between Steve and Ed using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. (Round your answers to the nearest cent.) Costs allocated to Steve Ed (a) Stand-alone (b) Incremental Steve primary user Ed primary user (c) Shapley
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