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Trio Inc. and Brander Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Trio rents the machine on its
Trio Inc. and Brander 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 $25,000. If Brander rents the machine alone, it will cost $15,000. If they rent the machine together, the cost will decrease to $35,000.
Requirement 1. Calculate Trio's and Brander's respective share of fees under the stand-alone cost-allocation method. Trio Brander Stand-alone Requirement 2. Calculate Trio's and Brander's respective share of fees using the incremental cost-allocation method assuming (a) Trio is the primary party (b) Brander is the primary party. Trio Brander Incremental Trio primary user Brander primary user Requirement 3. Calculate Trio's and Brander's respective share of fees using the Shapley value method. Trio Brander Shapley
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