How much of the lease cost will be allocated

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Question - Blue Tours, a tour organizer, leased a cruise liner for a special around-the-world tour. The lease cost is $210,400. Two classes of passengers are booked on the tour: first class and economy class. The total revenue from the 100 first-class passengers is $227,805 and from the 200 economy-class passengers is $234,185. Other costs for the two classes of passengers amount to $27,000 for first class and $33,380 for economy class. How much of the lease cost will be allocated to first-class passengers if the net realizable value method is used?

Reference no: EM133058133

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