DO ALL REQUIREMENTS

Bob and Nolan are students at Berkeley College. They share an apartment that is owned by

Nolan. Nolan is considering subscribing to an Internet provider that has the following

packages available:

Bob spends most of his time on the Internet $("$everything can be found online now"$).$

Nolan 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 $$90$

total package is a "win$-$win" situation.

Requirements

Allocate the $$90$ between Bob and Nolan using $($a$)$ the stand$-$alone cost$-$

allocation method, $($b$)$ the incremental cost$-$allocation method, and $($c$)$ the

Shapley value method.

Which method would you recommend they use and why?

Requirement $1.$ Allocate the $$90$ between Bob and Nolan 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.$)$