Allocation of travel costs. (20 minutes) Catherine MacDougall, a thirdyear undergraduate student at a university near Edinburgh, received an invitation to visit a prospective employer in Nice. A few days later, she received an invitation from a prospective employer in Copenhagen. She decided to combine her visits, travelling from Edinburgh to Nice, Nice to Copenhagen and Copenhagen to Edinburgh.

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

REQUIRED 1. How should MacDougall allocate the EUR 1,800 airfare between the employers in Nice and Copenhagen? Show the actual amounts you would allocate and give reasons for your allocations.
Repeat requirement 1 for the EUR 60 cab fares at the Edinburgh end of her travels. mky4

Transcribed Image Text:

REGULAR ROUND-TRIP FARES WITH NO STOPOVERS Edinburgh to Nice Edinburgh to Copenhagen EUR 1,400 EUR 1,100 MacDougall paid EUR 1,800 for her three-leg flight (Edinburgh to Nice, Nice to Copenhagen, Copenhagen to Edinburgh). In addition, she paid EUR 30 for a cab from her home to Edinburgh Airport and another EUR 30 for a cab from Edinburgh Airport to her home when she returned.