Question
Travis Inc. and Vesser Inc. are two small clothing companies that are considering leasing a dyeing machine together. If each company rents the machine on
Travis Inc. and Vesser Inc. are two small clothing companies that are considering leasing a dyeing machine together. If each company rents the machine on its own, it will cost $63,000 for Travis and $45,500 for Vesser. If they rent the machine together, the fee will decrease to $93,000.
If the incremental method were used, what amount of cost would be allocated to Travis Inc.? Assume Travis is ranked as the primary user.
Group of answer choices
$63,000
$37,750
$45,500
$47,500
If the Shapley value method were used, what amount of cost would be allocated to Travis Inc.?
Group of answer choices
$54,250
$55,250
$54,000
$46,500
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