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Tupper Inc. and Victory Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to
Tupper Inc. and Victory Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Tupper needs the machine for 700 hours and Victory needs it for 550 hours. If each company rents the machine on its own, the fee will be $90 per hour of usage. If they rent the machine together, the fee will decrease to $80 per hour of usage. Read the requirements. Requirement 1. Calculate Tupper's and Victory'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.) Requirement 2. Calculate Tupper's and Victory's respective share of fees using the incremental cost-allocation method assuming (a) Tupper ranked as the primary party and (b) Victory ranked as the primary party. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Requirement 3. Calculate Tupper's and Victory'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.) Requirement 4. Which method would you recommend Tupper and Victory use to share the fees? I would recommend the It is fairer than the which [ Given its simplicity, the is likely more acceptable. Requirements 1. Calculate Tupper's and Victory's respective share of fees under the stand-alone cost-allocation method. 2. Calculate Tupper's and Victory's respective share of fees using the incremental cost-allocation method assuming (a) Tupper ranked as the primary party and (b) Victory ranked as the primary party. 3. Calculate Tupper's and Victory's respective share of fees using the Shapley value method. 4. Which method would you recommend Tupper and Victory use to share the fees
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