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Mary is a consultant living in Chicago. She is planning to visit three clients in cities A, B, and C to attend business meetings. Individual
Mary is a consultant living in Chicago. She is planning to visit three clients in cities A, B, and C to attend business meetings. Individual travel costs are as follows The round-trip 'Chicago city A - Chicago airfare costs $150 The round-trip 'Chicago city B - Chicago airfare costs $120 The round-trip 'Chicago city C - Chicago airfare costs $100 She decides to combine the three trips into a 'Chicago city A city B - city C- Chicago' itinerary that will cost $300 a. Allocate the $300 to three clients using stand-alone cost allocation method. Cost allocated to client A Cost allocated to client B Cost allocated to client C b. Assuming all possible combinations of ranking the clients (primary, first incremental, second incremental), allocate the S300 to three clients using incremental cost allocation method. (For example; ABC means A is the primary, B is the first incremental, can C is the second incremental client) Complete the following tablie Cost allocated to client A Cost allocated to client B Cost allocated to client C Order ABC S 150 c. Using your results from part (b) allocate the S300 to three clients using Shapley Value method. Cost allocated to client A Cost allocated to client B Cost allocated to client C
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