Business, 19.06.2020 13:57 juliann5640

Toca Inc. and Besser Inc. are two small manufacturing companies that are considering leasing a cutting machine together rent the machine together, the cost will decrease to $45,000 Read the requirements If Toca rents the machine on its own, it will cost $30,000. If Besser rents the machine alone, it will cost $20,000. Requirements
1. Calculate Toca's and Besser's respective share of fees under the stand-alone cost-allocation method.
2. Calculate Toca's and Besser's respective share of fees using the incremental cost-allocation method assuming
(a) Toca is the primary party (b) Besser is the primary party.
3. Calculate Toca's and Besser's respective share of fees using the Shapley value method.
4. Which method would you recommend Toca and Besser use to share the fees?

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Toca Inc. and Besser Inc. are two small manufacturing companies that are considering leasing a cutti...

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