Catherine MacDougall, a third-year undergraduate student at a university near Edinburgh, received an invitation to visit a prospective employer in Nice. A few days later, she received an invitation from a prospective employer in Copenhagen. She decided to combine her visits, travelling from Edinburgh to Nice, Nice to Copenhagen and Copenhagen to Edinburgh.
MacDougall received job offers from both companies. Upon her return, she decided to accept the offer in Copenhagen. She was puzzled about how to allocate her travel costs between the two employers. She gathered the following data:
Regular round-trip fares with no stopovers
Edinburgh to Nice.............................................. £1400
Edinburgh to Copenhagen..................................... £1100
MacDougall paid £1800 for her three-leg flight (Edinburgh to Nice, Nice to Copenhagen, Copenhagen to Edinburgh). In addition, she paid £30 for a taxi from her home to Edinburgh Airport and another £30 for a taxi from Edinburgh Airport to her home when she returned.
Required
1. How should MacDougall allocate the £1800 airfare between the employers in Nice and Copenhagen? Show the actual amounts you would allocate and give reasons for your allocations.
2. Repeat requirement 1 for the £60 taxi fares at the Edinburgh end of her travels.