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Mehil owns a taxi business in Newcastle. He recently expanded his business by including limousines. Mehil's accountant has provided the following information on monthly revenues

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Mehil owns a taxi business in Newcastle. He recently expanded his business by including limousines. Mehil's accountant has provided the following information on monthly revenues and costs: . The taxi division has monthly revenues of $3,475,000 The Limousine division generates revenues of $375,000. Expenses of $2,656,750 were allocated to divisions based on the number of kilometres travelled. Mehil has heard about Activity Based Costing and wants to know what benefits it could provide, so he has obtained the following monthly information on expenses for NSW: Taxis Limousines Bookings 44,000 1,500 Kilometres 1,200,000 150,000 Driver hours 67,500 10,000 Mehil has identified that the main activity cost areas include salaries, vehicle costs and booking fees. Salaries $1,360,000 Booking fees 522,750 Fuel S1,193,000 Call centre booking fees $45,50v Vehicle maintenance $35,500

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