Answer the following questions using the information below:
The Salmon Bay Corporation currently uses a manufacturing facility costing $200,000 per year; 80% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 20% of the facility and increase the overall costs of maintaining the space by 5%.
-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?

Question

Answer the following questions using the information below:
The Salmon Bay Corporation currently uses a manufacturing facility costing $200,000 per year; 80% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 20% of the facility and increase the overall costs of maintaining the space by 5%.
-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?

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The Answer of Answer the following questions using the information below:
The Salmon Bay Corporation currently uses a manufacturing facility costing $200,000 per year; 80% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 20% of the facility and increase the overall costs of maintaining the space by 5%.
-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?

Answer the Following Questions Using the Information Below