Allocation of common costs. The cities of St. Anne, St. Teresa, and St. Steven are con-

1. a Allocation to sidering the implementation of a new program to handle disposal of hazardous waste to St. Anne, $1,500 comply with a new, more stringent provincial law. Because of the close proximity of the three cities, a joint program has been suggested. The annual cost of separate programs and a joint program are:

REQUIRED 1. Allocate the $5,000,000 cost of the joint program to each of the three cities using:

a. The stand-alone method

b. The incremental-allocation method (in the order of the most waste to the least waste).
2. How do you think the citizens of each community would feel about each of the two methods of allocation?
LO1

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City Capacity Cost St. Anne 100,000 tonnes $2,100,000 St. Teresa 25,000 tonnes $1,400,000 St. Steven 175,000 tonnes $3,500,000 Joint Program 300,000 tonnes $5,000,000