Requlred Information Exercises 1836 (Algo) Cost Allocation; Sharing Cab Fare [LO 18-3] [The following information...
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Requlred Information Exercises 1836 (Algo) Cost Allocation; Sharing Cab Fare [LO 18-3] [The following information applies to the questions displayed below.] Suppose there are three passengers sharing a single cab ride and that passenger A's usual fare to his destination would be $24, passenger B's usual fare to her destination would be $18, and passenger C's fare would be $42. Because they are sharing the cab, and assuming no surcharge, the total cab fare is $42, rather than the $84 they would have had to pay in total individually. So there is a $42 saving to sharing the cab. Part 1 (Algo) Required: 1. Assume the passengers decide to split the $42 savings based on the relative proportion of how much each passenger would have paid individually if they had not shared the cab. How much will each passenger pay? 2 Assume, instead, that the passengers decide to split the cab fare so that each passenger saves the same absolute amount of money. How much will each passenger pay
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