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Tippet Inc. and Vicki Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to
Tippet Inc. and Vicki Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Tippet needs the machine for 650 hours and Vicki needs it for 450 hours. If each company rents the machine on its own, the fee will be $65 per hour of usage. If they rent the machine together, the fee will decrease to $55 per hour of usage. Read the requirements. Requirement 1. Calculate Tippet's and Vicki's respective share of fees under the stand-alone cost-allocation method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Requirement 2. Calculate Tippet's and Vicki's respective share of fees using the incremental cost-allocation method assuming (a) Tippet ranked as the primary party and (b) Vicki ranked as the primary party. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Requirement 3. Calculate Tippet's and Vicki's respective share of fees using the Shapley value method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.)
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