I. Purpose of Note This amicus curiae brief does not address the merits of the predatory pricing allegation against BuyGasCo Corporation (“BuyGasCo”). It refers only to the nature of the cost accounting system that we, as accounting students, believe is appropriate to address the issues presented by cases of this general type. We offer our opinions on this topic concerned with the allocation of indirect expense costs used to evaluate the appropriate value of the cost of gasoline in the case State of Florida v. BuyGasCo Corporation, 2003-05143 (D. FL. 2003). We believe that the allocation system used in that opinion is not consistent with systems in common practice. The use of such a system has a potential negative effect on both the motor fuel retail sector and the motor fuel market. It should not be used to adjudicate matters relating to the Florida v. BuyGasCo litigation. This brief aims to help the court construct a more appropriate framework for resolving the indirect cost allocation issues presented by the case. Before proceeding with a discussion of this framework, it may be helpful to the court to know that we agree with the view expressed in the initial decision: that BuyGasCo's cost for regular gasoline exceeded the price. We understand that the court is currently considering BuyGasCo's motion to appeal decision and that the motion relies heavily on the cost accounting system developed by Dr. JT Humboldt. While we agree with the accuracy and fundamentals of activity-based costing systems like Dr Humboldt's, we disagree with his allocation methodology and calculations.II. BackgroundThe Florida Motor Fuel Marketing Practices Act (MFMPA) determines the cost of motor fuel to non-refiners as the actual invoice price... half the paper... regular grade gasoline was sold at a loss of $0 ,0021. Figure 6 Recommended Refined Costing Method Cost Pool Driver Regular Plus Premium1: Labor ($5,220) Gallons of Gas Sold 60.3% $3,148 22.4% $1,169 17.3% $9,032: Employee Housing ($4,501 ) Gallons of Gas Sold 60.3% $2,714 22.4% $1,008 17.3% $7,793: Common Gasoline Dispensing ng( $15,388) Gallons of Gas Sold 60.3% $9,279 22.4% $3,447 17 .3% $2,6624: Grade-Specific Gasoline Delivery ($8,068) Number of Grades 33.3% $2,689 33.3% $2,689 33.3% $2,690 Total Cost $17,830 $8.31 3 $7,034 Cost per gallon $0.0521 $0.0654 $0.0716Figure 6, continuedPrice Direct Cost Indirect Cost Profit (Loss) Premium $1.43 $1.22 $0.0716 $0.1384 Plus $1.36 $1.20 $0.0654 $0.0946 Normal $1.23 $1.18 $0.0521 ($0.0021)VII. ConclusionsFor the reasons set out above, the hearing ruling must be confirmed.