Evan and Brett are students at Berkeley College. They share an apartment that is owned...
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Evan and Brett are students at Berkeley College. They share an apartment that is owned by Brett who is considering subscribing to an Internet provider that has the following packages available: Package Per Month A. Internet access $45 B. Phone services $15 C. Internet access + phone services $50 Evan spends most of his time on the Internet (everything can be found online now). Brett prefers to spend his time talking on the phone rather than using the Internet (going online is a waste of time). They agree that the purchase of the $50 total pack age is a win win situation. Answer the following questions: 1. Allocate the $50 between Evan and Brett, using (a) the stand - alone cost - allocation method, (b) the incremental cost - allocation method, and (c) the Shapley value method. 2. Which method would you recommend they use and why?
Requirement 1. Allocate the $ 50 between Evan and Brett using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. (Round your answers to the nearest cent.)
Costs allocated to
Evan
Brett
(a) Stand-alone
(b) Incremental
Evan primary user
Brett primary user
(c) Shapley
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