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Three restaurants in a downtown area of a large city have decided to share a valet service and parking lot to their customers. the cost of the service and lot is $10,000 per month. the owners of the restaurants need to decide how to divide the $10,000 cost. the actual usage, planned usage, and practical capacity in the month of may was:
RESTAURANT ACTUAL PARKING SPOTS USED PLANNED PARKING SPOTS PRACTICAL CAPACITY PARKING SPOTS
A 1,500 1,600 2,000
B 1,400 1,300 1,500
C 1,300 1,100 1,500
Required
Problem 1: Allocate the fixed cost to each restaurant using actual, planned and capacity usage measures. which method of allocation makes more sense?
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