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Airporter Service Company operates scheduled coach service form Boston's Logan Airport to downtown Boston and to Cambridge. Acommon scheduling service center at the airport is responsible for ticketing and customer service for both routes. The service center is regularly staffed to service traffic of 2,400 passengers per week: two-thirds for downtown Boston passengers and the balance for Cambridge passengers. The cost to operate this service center is 7,200 per week normally, but it is higher during weeks when additional help is required to service higher traffic levels. The service center costs and number of passengers serviced during the 5 weeks of August follow:

Week        Cost                BostonPassengers            Cambridge Passengers

1              7,200                   1,600                                 800

2              7,200                   1,500                                 900

3              7,600                   1,650                                 800

4              7,800                   1,700                                 850

5              7,200                   1,700                                 700

a. How much of the service center costs should be charged to the Boston servicve and how much to the Cambridge service?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9797378

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