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Tille Inc. and Bick Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Tille rents the machine on its
Tille Inc. and Bick Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Tille rents the machine on its own, it will cost $20,000. If Bick rents the machine alone, it will cost $10,000. If they rent the machine together, the cost wil decrease to $27,000. Read the requirements. Requirement 1. Calculate Tille's and Bick's respective share of fees under the stand-alone cost-allocation method. Tille Bick Stand-alone Requirements 1. Calculate Tille's and Bick's respective share of fees under the stand-alone cost-allocation method. 2. Calculate Tille's and Bick's respective share of fees using the incremental cost-allocation method assuming (a) Tille is the primary party (b) Bick is the primary party 3. Calculate Tille's and Bick's respective share of fees using the Shapley value method. 4. Which method would you recommend Tille and Bick use to share the fees? Print Done
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