Cost Allocation; Sharing Cab Fare Suppose there are three passengers sharing a single cabride and that passenger A’s usual fare to his destination would be $12, passenger B’s usual fare to herdestination would be $18, and passenger C’s fare would be $30. Because they are sharing the cab,and assuming no surcharge, the total cab fare is $30, rather than the $60 they would have had to payin total individually. So there is a $30 saving to sharing the cab.Required1. If the passengers decide to split the $30 savings based on the relative proportion of how much eachpassenger would have paid individually if they had not shared the cab, then how much will passengerC pay?a. $10b. $15c. $20d. $30
Cost Allocation; Sharing Cab Fare Suppose there are three passengers sharing a single cab
ride and that passenger A’s usual fare to his destination would be $12, passenger B’s usual fare to her
destination would be $18, and passenger C’s fare would be $30. Because they are sharing the cab,
and assuming no surcharge, the total cab fare is $30, rather than the $60 they would have had to pay
in total individually. So there is a $30 saving to sharing the cab.
Required
1. If the passengers decide to split the $30 savings based on the relative proportion of how much each
passenger would have paid individually if they had not shared the cab, then how much will passenger
C pay?
a. $10
b. $15
c. $20
d. $30
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
