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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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    Solution Preview

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

    Solution Summary

    This solution shows how to allocate costs of an airline.