Allocation of common costs. Sam, Sari, and Tony are members of die Toronto Fire Department. They share a penthouse apartment that has a lounge room with the latest 50 TV.

Tony owns the apartment, its furniture, and the 50 TV He can subscribe to a cable television company that has the following packages available:

Rate Package per Month A. Basic news $33 B. Premium movies 26 C. Premium sports 31 D. Basic news and premium movies 51 E. Basic news and premium sports 55 F. Premium movies and premium sports 49 G. Basic news, premium movies, and premium sports 71 Sam is a TV news junkie, has average interest in movies, and zero interest in sports (“They’re overpaid jocks”). San is a movie buff, likes sports, and avoids the news (“It’s all depressing anyway”). Tony is into sports in a big way, has average interest in news, and zero interest in movies (“I always fall asleep before the end”). They all agree that the purchase ofthe $71 total package is a “win-win-win” situation.

Each works on a different eight-hour shift at the fire station, so conflicts in viewing are minimal.

Required 1. What criteria might be used to guide the choice about how to allocate the $71 monthly cable fee among Sam, Sari, and Tony?

2. Outline three methods of allocating the $71 among Sam, Sari, and Tony.