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Talbot Inc. and Batt Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Talbot rents the machine on its
Talbot Inc. and Batt Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Talbot rents the machine on its own, it will cost $55,000. If Batt rents the machine alone, it will cost $45,000. If they rent the machine together, the cost will decrease to $96,000. Read the Requirement 1. Calculate Talbot's and Batt's respective share of fees under the stand-alone cost-allocation method. Requirement 2. Calculate Talbot's and Batt's respective share of fees using the incremental cost-allocation method assuming (a) Talbot is the primary party (b) Batt is the primary party. Requirement 3. Calculate Talbot's and Batt's respective share of fees using the Shapley value method
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