Airport Coach Service Company operates scheduled coach service from Boston's Logan Airport to downtown Boston and to Cambridge. A common 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 weeks of August follow:

Required(a) How much of the service center costs will be allocated to the Boston service and to the Cambridge service if the costs are allocated in proportion to the number of actual passengers?(b) Suggest an improved approach to allocating the costs and explain why your method is an improvement. Using your approach, how much of the service center costs will be charged to the Boston service and to the Cambridgeservice?

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BOSTON PASSENGIERS CAMBRIIXGE PASSENGERS WEEK WEEK COST 800 $7,200 1,600 1,500 1,650 1,700 1,700 900 800 7,200 7,600 7,800 7,200 4 850 700