The cost of a limousine ride from Ohare airport to downtown Gurnee is $110 plus $10 per person in the taxi plus $1 for each luggage item in the trunk. Charlotte is on a trip with Micahael, a business associate form another departement. Charlotte has one laggage item and Michael has three.
a. Compute the portion of the limousine fare allocated to Charlotte using the incremental cost allocation method if Charlotte is considered the primary user.
b.Compute the portion of the limousine fare allocated to Charlotte using the incremental cost allocation method if Michael is considered the primary user.
c. Compute the allocation of the limousine fare using the stand-alone method
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