Calculating costs using traditional and activity-based systems Bubba and Danny are college friends planning a skiing trip to Killington before the new year. They estimated the following for the trip:...

Calculating costs using traditional and activity-based systems

Bubba and Danny are college friends planning a skiing trip to Killington before the new year. They estimated the following for the trip:

Requirements

1. Bubba suggests that the costs be shared equally. Calculate the amount each person would pay.


2. Danny does not like the idea of sharing the costs equally because he plans to stay in the room rather than ski. Danny suggests that each type of cost be allocated to each person based on the above-listed allocation bases. Using the activity allocation for each person, calculate the amount that each person would pay based on his own consumption of the activity.

Extracted text: Activity Allocation Estimated Allocation Base Pounds of food eaten Number of lift tickets Number of nights Bubba Danny Costs Food 24 26 $ 400 300 Skiing Lodging 280 $ 980 2.