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Five rental car agencies at Vancouver Airport have decided to lease a large parking lot from the Vancouver Airport Authority to store their vehicles. The

Five rental car agencies at Vancouver Airport have decided to lease a large parking lot from the Vancouver Airport Authority to store their vehicles. The monthly cost of the fixed lease is $50,000 per month. The lease costs are a fixed cost for each company since a five-year contract was signed. The size of the leased lot was determined by the five car rental companies reserving the number of parking stalls they would require each month over the term of the lease (the practical capacity). For every month of actual usage, the companies estimate how many parking stalls they will need that month, and then determine the actual usage. The five car rental agencies (Budget, National, Avis, Hertz and Thrifty) cannot agree on how to divide the $50,000 per month fixed lease costs. Budget and National want to use the actual usage, while Avis wants to use the planned usage, Hertz wants to use the practical capacity which is the estimated amount that each car rental company reserved spots for, and Thrifty thinks they should divide the costs evenly amongst the five companies as an easy method to calculate the costs. The companies also haven't determined a mechanism for monetary fairness if one company uses more parking stalls than they have reserved (practical capacity) or planned. to use each month (planned parking stalls). For the month of March 2022, the usage rates were: Actual Parking Planned Parking Practical Capacity Stalls Used Stalls Parking Stalls Budget Car Rental National Car Rental 2,000 2,200 2,500 1,800 2,200 2,500 Avis Car Rental 1,600 1,300 1,500 Hertz Car Rental Thrifty Car Rental Totals 700 900 1,000 1,900 2,000 2,500 8,000 8,600 10,000 Required: Answer the following questions: 1) If Budget and National are able to persuade the other companies to use the actual usage, how much of the $50,000 lease costs would be allocated to Budget Car Rentals? Round final answer to nearest dollar). (3 marks - 1 mark for correct multi-choice answer and 2 other marks for showing correct work)

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