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Trio Inc. and Better Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Trio rents the machine on its
Trio Inc. and Better Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Trio rents the machine on its own, it will cost $33,000. If Better rents the machine alone, it will cost $22,000. If they rent the machine together, the cost will decrease to 550,000 Read the requirements. Requirement 1. Calculate Trio's and Better's respective share of fees under the stand-alone cost-allocation method. Trio Better Stand-alone Requirement 2. Calculate Trio's and Better's respective share of fees using the incremental cost-allocation method assuming (a) Trio is the primary party (b) Better is the primary party. Trio Better Incremental Trlo primary user Better primary user Requirement 3. Calculate Trio's and Better's respective share of fees using the Shapley value method Trio Better Shapley Requirement 4. Which method would you recommend Trio and Better use to share the fees? I would recommend the It is fairer than the V which V.Given its simplicity, the is likely more acceptable
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