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Toca Inc. and Brayden Inc. are two small manufacturing companies that are considering leasing a cutting machine togather. If Toca rents the machine on its
Toca Inc. and Brayden Inc. are two small manufacturing companies that are considering leasing a cutting machine togather. If Toca rents the machine on its own, it will cost $35,000. If Brayden rents the machine alone, it will cost $25,000. If they rent the machine together, the cost will decrease to $57,000 Requirement 1. Calculate Toca's and Brayden's respective share of fees under the stand-alone cost-allocation method TocaBrayden Stand-alone Requirement 2. Calculate Toca's and Brayden's respective share of fees using the incremental cost-allocation method assuming (a) Toca is the primary party (b) Brayden is the primary party Toca Brayden Incremental Toca primary user Brayden primary user Requirement 3. Calculate Toca's and Brayden's respective share of fees using the Shapley value method. Toca Brayden Shapley Requirement 4. Which method would you recommend Toca and Brayden use to share the fees? I would recommend the which It is fairer than the .Given its simplicity, the is likely more acceptable
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