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Tram Inc. and Drury Inc. are two small manufacturing companies that are considering leasing a...

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Accounting

Tram Inc. and Drury Inc. are two small manufacturing companies that are considering leasing a machine together. If Tram rents the machine on its own, it will cost $40,000. If Drury rents the machine on its own, it will cost $60,000. If they decide to rent the machine together, it will cost them 80,000.

What is Drury's cost under the incremental cost-allocation method assuming Tram is the primary party?

Group of answer choices

$30,000

$20,000

$40,000

$60,000

Answer & Explanation Solved by verified expert
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