The cities of St. Anne, St. Teresa, and St. Steven are considering the implementation of a new program to handle disposal of hazardous waste to comply with a new, more stringent provincial law. Because of the close proximity of the three cities, a joint program has been suggested. The annual cost of separate programs and a joint program are:

REQUIRED
1. Allocate the $5,000,000 cost of the joint program to each of the three cities using:
a. The stand-alone method.
b. The incremental-allocation method (in the order of the most waste to the least waste).
2. How do you think the citizens of each community would feel about each of the two methods of allocation?

Transcribed Image Text:

City Capacity Cost St. Anne St. Teresa St. Steven oint Program 100,000 tonnes 25,000 tonnes 175,000 tonnes 300,000 tonnes $2,100,000 $1,400,000 $3,500,000 S5,000,000