Suppose there are three passengers sharing a single cab ride and that passenger A’s usual fare to his destination would be $12, passenger B’s usual fare to her destination would be $18, and passenger C’s fare would be $30. Because they are sharing the cab, and assuming no surcharge, the total cab fare is $30, rather than the $60 they would have had to pay in total individually. So there is a $30 saving to sharing the cab.

Required

1. If the passengers decide to split the $30 savings based on the relative proportion of how much each passenger would have paid individually if they had not shared the cab, then how much will passenger C pay?

a. $10

b. $15

c. $20

d. $30

2. If the passengers decide to split the cab fare so that each passenger saves the same absolute amount of money, how much will passenger B pay?

a. $8

b. $9

c. $10

d. $12

3. Explain how you would split the total cost of the cab fare and why. Are there other ways that could be sensible and/or fair?