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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.
If the Shapley value method were used, what amount of cost would be allocated to Travis Inc.?
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