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Allocating Costs for An Airline

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You own an airline. Your revenue is based on tickets purchased. You have the following overhead costs: Rent, Management, Aircraft Lease, and Crew Salaries. You have two main flights, NYC to Dubai & NYC to Phoenix, AZ. You are trying to allocate your costs based on flight destination.

Please compare the drivers you would use and which method would give a better allocation of costs.

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This solution shows how to allocate costs of an airline.

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Rent will be allocated using the space occupied by the two routes.
Management will be allocated on the basis of time given by ...

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