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11. Santa works as a call center agent at home, and Klaus works as an...

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11. Santa works as a call center agent at home, and Klaus works as an independent sales representative for James Brodie and Company Ltd. The two brothers are customers of Speednet Telecommunication Ltd and are paying broadband unlimited internet and postpaid plan respectively. Santa currently subscribes to the broadband unlimited internet of 20MB download and 10MB upload speed for $90 (inclusive of tax), while Klaus subscribes to Smart's "Choice" postpaid plan, which provides him with 8 GB of data, unlimited SMS, unlimited on-net minutes, and 600 off-net minutes, for $50 (inclusive of tax). Upon reviewing Smart's bundle package and considering their needs, Santa and Klaus decide to take advantage of Smart's broadband internet plus postpaid plan, which costs $115. They believe that the bundle price would provide a "win-win" situation. Required: (i) Allocate the bundle price between Santa and Klaus using (a) the stand-alone cost allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. (12 points) (ii) Which method would you recommend and why? (3 points)

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