Requirement 2. Ralph does not like the idea of sharing the costs equally because he plans to stay in the room rather than ski. Raph suggests that each type of cost be alocaled to aach porson based on the above-isted alocation bases. Using the activity aliocation for each person, calculate the amount that each person would pay based on his own consumption of the activity

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Requirement 2. Ralph does not like the idea of sharing the costs equally because he plans to stay in the room rather than ski. Raph suggests that each type of cost be alocaled to each
porson based on the aboveisted alocation bases. Using the activity aliocation for each person, calculate the amount that each person would pay based on his own consumption of the activity.
If the costs were allocated, each person would pay the following
Allocated Cost
Bily
Data Table
Ralph
Estimated
Activity Allocation
Costs
Allocation Base
Billy
Ralph
Food
450 Pounds of tood eaten
16
34
ly
Sking
240 Number of lin tickets
Lodging
400
Number of nights
4.
1,090
Print
Done
Transcribed Image Text:Requirement 2. Ralph does not like the idea of sharing the costs equally because he plans to stay in the room rather than ski. Raph suggests that each type of cost be alocaled to each porson based on the aboveisted alocation bases. Using the activity aliocation for each person, calculate the amount that each person would pay based on his own consumption of the activity. If the costs were allocated, each person would pay the following Allocated Cost Bily Data Table Ralph Estimated Activity Allocation Costs Allocation Base Billy Ralph Food 450 Pounds of tood eaten 16 34 ly Sking 240 Number of lin tickets Lodging 400 Number of nights 4. 1,090 Print Done
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