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

question 54

Essay

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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Definitions:

Genetic Predispositions

The inherited genetic patterns that can influence an individual's likelihood of developing certain diseases, conditions, or traits.

Maternal Smoking

Cigarette smoking by pregnant women and its potential harm to the developing fetus, including health risks after birth.

Miscarriage

The spontaneous loss of a fetus before it is viable, typically before the 20th week of pregnancy.

Cognitive Development

The process by which an individual's ability to think, process, and understand their environment progresses throughout life.