Carrie's Cupcake Shop and Connie's Cakes each operate a bakery close to each other in a...

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Carrie's Cupcake Shop and Connie's Cakes each operate a bakery close to each other in a small town in Florida. If Carrie rents ovens on her own, it will cost $42,000. If Connie rents ovens on her own, it will cost $54,000. If they consolidate baking operations and share ovens, the total cost will be $80,000. Read the eauirements Requirement 1. Calculate Carrie's and Connie's respective cost of the shared ovens under the stand-alone cost-allocation method. Carrie Connie Stand-alone Requirement 2. Calculate Carrie's and Connie's respective cost of the shared ovens using the incremental cost-allocation method assuming (a) Carrie is the primary party and (b) Connie is the primary party. Carrie Connie Incremental Carrie primary user Connie primary user Requirement 3. Calculate Carrie's and Connie's respective cost of the shared ovens using the Shapley value method. Carrie Connie Shapley Requirement 4. Which method would you recommend Carrie and Connie use to share the cost of the ovens? Why? I would recommend the It is fairer than the which Given its simplicity, the V is likely more acceptable. Carrie's Cupcake Shop and Connie's Cakes each operate a bakery close to each other in a small town in Florida. If Carrie rents ovens on her own, it will cost $42,000. If Connie rents ovens on her own, it will cost $54,000. If they consolidate baking operations and share ovens, the total cost will be $80,000. Read the eauirements Requirement 1. Calculate Carrie's and Connie's respective cost of the shared ovens under the stand-alone cost-allocation method. Carrie Connie Stand-alone Requirement 2. Calculate Carrie's and Connie's respective cost of the shared ovens using the incremental cost-allocation method assuming (a) Carrie is the primary party and (b) Connie is the primary party. Carrie Connie Incremental Carrie primary user Connie primary user Requirement 3. Calculate Carrie's and Connie's respective cost of the shared ovens using the Shapley value method. Carrie Connie Shapley Requirement 4. Which method would you recommend Carrie and Connie use to share the cost of the ovens? Why? I would recommend the It is fairer than the which Given its simplicity, the V is likely more acceptable.

Answer rating: 100% (QA)

Explanation 1 Stand alone Cost allocation Method Connie 420004200054000 80000 35000 ... View the full answer