The Akron Company operates over 100 retail stores. Net income after income taxes is computed for each

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The Akron Company operates over 100 retail stores. Net income after income
taxes is computed for each store. Included in the computation are allocated
home office expenses, allocated interest expense, and allocated federal income
taxes. Since the store managers are paid a bonus based on the amount of net
income, some managers have protested the inclusion of allocated expenses in
the calculation. Comment on this objection.

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