John Ebert, a Graduating Student at a University in Calgary
John Ebert, a graduating student at a university in Calgary, received an invitation to visit a prospective employer in Halifax.A few days later, he received an invitation from a prospective employer in Toronto.He decided to combine his visits, travelling from Calgary to Halifax, Halifax to Toronto, and Toronto to Calgary.Ebert received job offers from both companies.On his return, he decided to accept the offer in Toronto.He was puzzled as to how to allocate his travel costs between the two employers.He gathered the following data:
Ebert paid $1,900 for his three-leg flight (Calgary to Halifax, Halifax to Toronto, Toronto to Calgary).In addition, he paid $30 for a limousine from his home to Calgary Airport and another $30 for a limousine from Calgary Airport to his home when he returned.Required:
a.Allocate the $1,900 airfare between the employers in Halifax and Toronto using both the stand-alone and incremental methods?
b.How would you allocate the $60 limousine fare?