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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 selfemployed 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 roundtrip fares with no stopovers:
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Requirement a How should Gaeta allocate the $ airfare between the clients in San Francisco and Chicago using a the standalone costallocation method? Hold all decimals in intermediary calculations. Round your final answers to the nearest dollar.
tabletableSanFranciscoChicago,Standalone,$$
b How should Gaeta allocate the $ airfare between the clients in San Francisco and Chicago using b the incremental costallocation method?
tabletableSanFranciscoGhicagoIncrementalSan Francisco client primary user,
Data table
Gaeta paid $ for his threeleg flight MiamiSan Francisco, San FranciscoChicago, ChicagoMiami
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