Reference no: EM132461249

Bruce Wayne, a graduating student at a university of Gotham, received an invitation to visit a prospective employer in Charlottetown, P.E.I. A few days later, he received an invitation from a prospective employer in Winnipeg. He decided to combine his visits, travelling from Gotham to Charlottetown, Charlottetown to Winnipeg, and Winnipeg to Gotham.

Bruce received job offers from both companies. On his return, he decided to accept the offer in Winnipeg. He was puzzled as to how to allocate his travel costs between the two employers. He gathered the following data:

Regular round trip                              Fare with no stopovers

Gotham to Charlotte town                       1,500

Gotham to Winnipeg                                1,200

Bruce paid $1,900 for his three-leg flight (Gotham to Charlottetown, Charlottetown to Winnipeg, Winnipeg to Gotham). In addition, he paid $30 for a limousine from his home to the Gotham Airport and another $30 for a limousine from Gotham Airport to his home when he returned.

Required

Question 1: Allocate the $1,900 airfare between the employers in Charlottetown and Winnipeg using both the stand-alone and incremental methods?

Question 2: How would you allocate the $60 limousine fare using the stand-alone and incremental methods?