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(Q.2) Mary is a consultant living in Chicago. She is planning to visit three clients in cities A, B, and C to attend business meetings.
(Q.2) 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 $300 to three clients using incremental cost allocation method. (For example: ABC means A is the primary, B is the first incremental, and C is the second incremental client) Complete the following table. Order Cost allocated to client A $ 150 Cost allocated to client B Cost allocated to client C ABC | c. Using your results from part (b) allocate the $300 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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