Friendly Skies Ltd operates the check-in facilities at domestic and international terminals throughout Australia. During the month of May the following costs were incurred as passengers were processed by the Check-in Department at Brisbane Airport:

Required:
1. Calculate the cost per check-in at the international and domestic terminal.
2. Why does the cost per check-in differ between the two terminals?
3. Do these costs provide a reliable estimate of the costs incurred to check in each passenger at the international and domestic terminals? Explain your answer.
4. Now might the management of Friendly Skies Ltd use this information?

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International terminal Domestic terminal Costs: Managers' and supervisors' salaries $18 000 $27 000 Check-in staff salaries 13 500 45 000 Depreciation on baggage handling equipment Boarding passes, baggage tags and other consumables 29 340 57 600 3 700 2 520 Depreciation on computer hardware and software 9 000 30 600 Equipment insurance 900 2 340 Rent (allocated per square metre) 1 800 7 200 Electricity 2160 5940 Number of passengers processed 6 300 19 800