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Cost Allocation Issues. Assume you rent a house with two friends. The total monthly rent is $1,500. Your bedroom is the smallest of the three bedrooms, and each of the others has a bathroom attached. You and your friends are trying to decide how to divide up the rent. Two possibilities are being discussed.
1. Share the cost equally among the three of you.
2. Determine rent based on square feet occupied (the attached bathrooms would be part of the square footage measurement).
Required:
Question 1: Which approach do you think is most fair for all involved? Why? Which approach is easiest? Why? Suggest another approach to dividing up the cost of rent
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