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Tupper Inc. and Van Inc. are two small dothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to
Tupper Inc. and Van Inc. are two small dothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Tupper needs the machine for 800 hours and Van needs it for 700 hours. If each company rents the machine on its own, the fee will be $95 per hour of usage. If they rent the machine together, the fee will decrease to S8s per hour of usage. Read the requirements Requirement 1. Calculate Tupper's and Van'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.) Tupper Van Stand-alone Requirement 2. Calculate Tupper's and Van's respective share of foes using the incremental cost-allocation method assuming (a) Tupper ranked as the primary party and (b) Van ranked as the primary party. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Tupper Van Incremental Tupper primary user Van primary user Requirement 3. Calculate Tupper's and Van's respective share of fees using the Shapley value method. (Do not round Intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Tupper Van Shapley Requirement 4. Which method would you recommend Tupper and Van 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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