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Gregory Gaeta, a self - employed consultant near Miami, receives an invitation to consult with a client in San Francisco and another client in Chicago.

Gregory Gaeta, a self-employed consultant near Miami, receives an invitation to consult with a client in San Francisco and another client in Chicago. He decides to combine his visits, traveling from Miami to San Francisco, San Francisco to Chicago, and Chicago to Miami. Gaeta wonders how he should allocate his travel costs between the two clients. He has collected the following data for regular round-trip fares with no stopovers:
(Click icon to view round-trip data.)
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Requirement 1 a. How should Gaeta allocate the $1,100 airfare between the clients in San Francisco and Chicago using (a) the stand-alone cost-allocation method? (Hold all decimals in intermediary calculations. Round your final answers to the nearest dollar.)
\table[[,\table[[San],[Francisco]],Chicago,],[Stand-alone,$,660,$,440]]
b. How should Gaeta allocate the $1,100 airfare between the clients in San Francisco and Chicago using (b) the incremental cost-allocation method?
\table[[,\table[[San],[Francisco]],Ghicago],[Incremental],[San Francisco client primary user,750,500],[350,600]]
Data table
Gaeta paid $1,100 for his three-leg flight (Miami-San Francisco, San Francisco-Chicago, Chicago-Miami).
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