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.Required2. If the passengers decide to split the cab fare so that each passenger saves the same absolute amount ofmoney, how much will passenger B pay?a. $8b. $9c. $10d. $12
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.Required2. If the passengers decide to split the cab fare so that each passenger saves the same absolute amount ofmoney, how much will passenger B pay?a. $8b. $9c. $10d. $12
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
2. If the passengers decide to split the cab fare so that each passenger saves the same absolute amount of
money, how much will passenger B pay?
a. $8
b. $9
c. $10
d. $12
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