Allocation of travel costs. Joan Ernst, a graduating student at a university in Vancouver, received an invitation to visit a prospective employer in Halifax. A few days later, she received an invitation from a prospective employer in Toronto. She decided to combine her visits, travelling from Vancouver to Halifax, Halifax to Toronto, and Toronto to Vancouver.

Ernst received job offers from both companies. On her return, she decided to accept the offer in Toronto. She was puzzled about how to allocate her travel costs between the two employers. She gathered the following data:

Regular Round-Trip Fares with No Stopovers Vancouver to Halifax $1,500 Vancouver to Toronto $ 1,200 Ernst paid $1,900 for her three-leg flight (Vancouver to Halifax, Halifax to Toronto, Toronto to Vancouver). In addition, she paid $30 for a limousine from her home to Vancouver Airport and another $30 for a limousine from Vancouver Airport to her home when she returned.

582 CHAPTER 14 Required 1. How should Ernst allocate the $1,900 airfare between the employers in Halifax and Toronto? $how the actual amounts you would allocate, and give reasons for your allocations.

Repeat requirement 1 for the $60 limousine charges at the Vancouver end of her travels,