Air porter Service Company operates scheduled coach service from Bostons Logan airport to downtown Boston and to

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Air porter Service Company operates scheduled coach service from Boston€™s Logan airport to downtown Boston and to Cambridge. A common scheduling service center at the airport is responsible for ticketing and customer service for both routes. The service center is regularly staffed to service traffic of $ 2,400 passengers per week: two-thirds for downtown Boston passengers and the balance for Cambridge passengers. The cost to operate this service center is $ 7,200 per week normally, but it is higher during weeks when additional help is required to service higher traffic levels. The service center costs and number of passengers serviced during the 5 weeks of August follow:

Air porter Service Company operates scheduled coach service from

How much of the service center costs should be charged to the Boston service and how much to the Cambridge service?

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Management Accounting Information for Decision-Making and Strategy Execution

ISBN: 978-0137024971

6th Edition

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

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