Data table Miami to San Francisco $ 1,200 Miami to Chicago $ 800 More info Gellespie paid $1,350 for his three-leg flight (Miami-San Francisco, San Francisco-Chicago, Chicago-Miami). Requirement 1 a. How should Giancola allocate the $1,350 airfare between the clients in San Francisco and Chicago using (a) the stand-alone cost-allocation method? (Hold all decimals in intermediary calculations. Round your final answers to the nearest dollar.) San Francisco Chicago Stand-alone 810' $ 540 b. How should Giancola allocate the $1,350 airfare between the clients in San Francisco and Chicago using (b) the incremental cost-allocation method? San Francisco Chicago Incremental San Francisco client primary user $ 1,200 $ 150 Chicago client primary user $ 550's 800 San Francisco and Chicago using (c) the Shapley value method? c. How should Giancola allocate the $1,350 airfare between the clients San Francisco Chicago Shapley $ 875's 475 Requirement 2. Which method would you recommend Giancola use and why? I would recommend the Shapley value method The recommended method is fairer than the incremental method which names a primary user and allocates a higher proportion of the common costs to that user . The recommended method allocates costs in a manner that is close to the costs allocated under the stand-alone method but takes a more comprehensive view of the common cost allocation problem by considering primary and incremental users Data table Miami to San Francisco $ 1,200 Miami to Chicago $ 800 More info Gellespie paid $1,350 for his three-leg flight (Miami-San Francisco, San Francisco-Chicago, Chicago-Miami). Requirement 1 a. How should Giancola allocate the $1,350 airfare between the clients in San Francisco and Chicago using (a) the stand-alone cost-allocation method? (Hold all decimals in intermediary calculations. Round your final answers to the nearest dollar.) San Francisco Chicago Stand-alone 810' $ 540 b. How should Giancola allocate the $1,350 airfare between the clients in San Francisco and Chicago using (b) the incremental cost-allocation method? San Francisco Chicago Incremental San Francisco client primary user $ 1,200 $ 150 Chicago client primary user $ 550's 800 San Francisco and Chicago using (c) the Shapley value method? c. How should Giancola allocate the $1,350 airfare between the clients San Francisco Chicago Shapley $ 875's 475 Requirement 2. Which method would you recommend Giancola use and why? I would recommend the Shapley value method The recommended method is fairer than the incremental method which names a primary user and allocates a higher proportion of the common costs to that user . The recommended method allocates costs in a manner that is close to the costs allocated under the stand-alone method but takes a more comprehensive view of the common cost allocation problem by considering primary and incremental users
