The Medina Street Vault is a little coffee shop in downtown Cairo. They offer coffee, lunch, and a variety of sweet treats. They also host large groups and do some small catering events. The manager has segregated the coffee shop into three areas. Most customers come in for just coffee and a sweet treat, and it would cost about $$400$ per month if that is all the shop offered. The lunch group takes a bit more space, as most customers use the dining area to relax while enjoying their food. This part of the business would cost about $$1,100$ if it needed its separate facility. The coffee shop currently pays $$1,200$ per month on its current building.

The Medina Street Vault's accountant is trying to analyze the profitability of the two separate areas.

Instructions

$.$ If the accountant uses the incremental method to allocate the common costs, rank the areas, and determine how much would be allocated to each area of the coffee shop?

$.$ If the accountant uses the stand$-$alone method instead to allocate the common costs, how much would be llocated to each area of the coffee shop?

Which of the methods would be fair and why?