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Homework: chapter 15 HW Save Score: 0 of 20 pts 6 of 6 (0 complete) HW Score: 0%, 0 of 190 pts E15-24 (similar to)
Homework: chapter 15 HW Save Score: 0 of 20 pts 6 of 6 (0 complete) HW Score: 0%, 0 of 190 pts E15-24 (similar to) Question Help * Gerald Gafford, a self-employed consultant near Atlanta, received an invitation to visit a prospective client in Seattle. A few days later, he received an invitation to make a presentation to a prospective client in Denver. He decided to combine his visits, traveling from Atlanta to Seattle, Seattle to Denver, and Denver to Atlanta. Gafford received offers for his consulting services from both companies. Upon his return, he decided to accept the engagement in Denver. He is puzzled over how to allocate his travel costs between the two clients. He has collected the following data for regular round-trip fares with no stopovers: EEE (Click icon to view round-trip data.) Read the requirements (Click the icon to view additional data.) Requirement 1 a. How should Gafford allocate the $1,300 airfare between the clients in Seattle and Denver using the stand-alone cost-allocation method? (Hold all decimals in intermediary calculations. Round your final answers to the nearest dollar.) Seattle Denver Stand-alone Requirements Data Table More Info 1. How should Gafford allocate the $1,300 airfare between the clients in Seattle and Denver using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method? Atlanta to Seatte Atlanta to Denver 825 675 Gafford pald $1,300 for his three-leg flight (Atlanta-Seattle, Seattle-Denver, Denver-Atlanta). In addition, he paid $70 each way (S140 total) for limousines from his home to Atlanta Airport and back when he retumed. 2. Which method would you recommend Gafford use and why? 3. How should Gafford allocate the $140 limousine charges between the clients in Seattle and Denver? Print Done Print Done Print Done Enter any number in the edit fields and then click Check Answer. Clear All Check Answer remaining
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