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