Trask Inc. and Vice Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Trask needs the machine for 1,000 hours and Vice needs it for 750 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 $85 per hour of usage. Read the requirements Requirement 1, Calculate Trask's and Vice'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) Incremental Trask primary user Vice primary user Trask Stand-alone Requirement 2. Calculate Trask's and Vice's respective share of fees using the incremental cost-allocation method assuming (a) Trask ranked as the primary party and (b) Vice ranked as the primary party. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dotar.) i Trask Vice Shapley Vice Requirement 3. Calculate Trask's and Vice'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) Trask Vice
Trask Inc. and Vice Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Trask needs the machine for 1,000 hours and Vice needs it for 750 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 $85 per hour of usage. Read the requirements Requirement 1, Calculate Trask's and Vice'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) Incremental Trask primary user Vice primary user Trask Stand-alone Requirement 2. Calculate Trask's and Vice's respective share of fees using the incremental cost-allocation method assuming (a) Trask ranked as the primary party and (b) Vice ranked as the primary party. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dotar.) i Trask Vice Shapley Vice Requirement 3. Calculate Trask's and Vice'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) Trask Vice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Trask Inc. and Vice Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Trask needs the
machine for 1,000 hours and Vice needs it for 750 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 $85 per hour of usage.
Read the requirements
Requirement 1, Calculate Trask's and Vice'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)
Incremental
Trask primary user
Vice primary user
Trask
Stand-alone
Requirement 2. Calculate Trask's and Vice's respective share of fees using the incremental cost-allocation method assuming (a) Trask ranked as the primary party and (b) Vice ranked as the
primary party. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar)
Trask
Vice
Shapley
Vice
Requirement 3. Calculate Trask's and Vice'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)
Trask
Vice
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