Assume the cost of a limousine ride from Toronto's Pearson International Airport to downtown Toronto is $88, plus $10 per person in the taxi, plus $1 for each luggage item in the trunk. Susan is on a trip with George, a business associate from another department. Susan has one luggage item and her associate has three.
a)Compute the portion of the limousine fare allocated to Susan using the stand-alone method.
b)Compute the portion of the limousine fare allocated to Susan using the incremental cost allocation method if Susan is considered the primary user.
c)Compute the portion of the limousine fare allocated to Susan using the incremental cost allocation method if George is considered the primary user.
d)Which method is the most fair? Explain your reasoning.

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The Answer of Assume the cost of a limousine ride from Toronto's Pearson International Airport to downtown Toronto is $88, plus $10 per person in the taxi, plus $1 for each luggage item in the trunk. Susan is on a trip with George, a business associate from another department. Susan has one luggage item and her associate has three.
a)Compute the portion of the limousine fare allocated to Susan using the stand-alone method.
b)Compute the portion of the limousine fare allocated to Susan using the incremental cost allocation method if Susan is considered the primary user.
c)Compute the portion of the limousine fare allocated to Susan using the incremental cost allocation method if George is considered the primary user.
d)Which method is the most fair? Explain your reasoning.

Assume the Cost of a Limousine Ride from Toronto's Pearson