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Travis Inc. and Venice Inc, are two small clothing companies that are considering leasing a dyeing machine together, The companies estimated that in order to
Travis Inc. and Venice Inc, are two small clothing companies that are considering leasing a dyeing machine together, The companies estimated that in order to meet production. Travis needs the machine for 650 hours and Venice needs it for 400 hours. If each company rents the machine on its own, the fee will be $100 per hout of usage. If they rent the machine together, the fee will decrease to $95 per hour of usage. Read the requirements. Requirement 1. Calculate Travis's and Venice'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.) 1. Calculate Travis's and Venice's respective share of fees under the stand-alont cost-allocation method 2. Calculate Travis's and Venice's respective share of fees using the incremental cost-allocation method assuming (a) Travis ranked as the primary party and (b) Venice ranked as the primary party. 3. Calculate Travis's and Venice's respective share of fees using the Shapley value method. 4. Which method would you recommend Travis and Venice use to share the fees
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