Currently, Fire Station 51 and Fire Station 81 operate separate EMS trucks. Station 51 has operating costs of $46,000 per year. Station 81 reports operating cost of $42,000 per year. Station 51 utilizes its truck about 65% of the time, and Station 81 has an operating efficiency of about 40%. The fire stations are trying to determine the benefits of only operating one EMS truck that they will share. Based on the extended needs, the newer EMS truck will cost $80,000. How much of the new EMS truck should be allocated to each fire station using the stand-alone cost allocation?

Question

Quizplus · Accepted Answer

$46,000 + $42,000 = $88,000
$46,000 ÷ $88,000 x $80,000 = $41,818
$42,000 ÷ $88,000 x $80,000 = $38,182
station 51 cost + station 81 cost = total cost
station 51÷ total cost x com cost = station 51 share
station 81 ÷ total cost x com cost = station 81 share

Currently, Fire Station 51 and Fire Station 81 Operate Separate