1. Based on the traditional cost system, compute the profitability of the two sales divisions, HSO and GSO.
3. Calculate the costs and profitability of the HSO and GSO offices under the new cost system.
4. Calculate breakeven sales in dollars under the traditional costing system and under the new costing system.
General and Administration Exhibit 2 \begin{tabular}{|l|r|r|r|r|} \hline Operational Data & HSO & \multicolumn{1}{|c|}{ GSO } & \multicolumn{1}{|c|}{ Total } \\ \hline & & & & \\ \hline Number of Trades & 184,000 & 15 & 216,000 & 400,000 \\ \hline Headcount & 50,000 & & 25 & 40 \\ \hline Customer Contacts & 15,000 & 37,500 & & 87,500 \\ \hline Computer Time & 8,400 & 132,680 & & 147,680 \\ \hline Number of Accounts & 10% & 14,400 & & 22,800 \\ \hline% of Sophisticated Trades & & 47% & 30% \\ \hline \end{tabular} Data and Transaction Processing \begin{tabular}{|l|l|} \hline Trade related & $1,200,000 \\ \hline \end{tabular} Trans. Fee $100/ trade \begin{tabular}{|l|rr|lr|} \hline & \multicolumn{2}{|l|}{ W400 } & \multicolumn{2}{|l|}{ W600 } \\ \hline Annual Lease & $300,000 & $350,000 \\ \hline Hourly Charge & $ & 250 & $ & 500 \\ \hline Usage (Hours) & 2,800 & 2,000 \\ \hline \multicolumn{1}{|l|}{} & & \\ \cline { 1 - 3 } Masterson Hrs \end{tabular} Question 1 Sales Office Profit - SOPAS Question 3 Sales Office Profit - ABC HSO GSO Profit Profit Question 4 Breakeven Sales FC/CM% HSO Traditional BE Sales Traditional ABC BE Sales ABC General and Administration Exhibit 2 \begin{tabular}{|l|r|r|r|r|} \hline Operational Data & HSO & \multicolumn{1}{|c|}{ GSO } & \multicolumn{1}{|c|}{ Total } \\ \hline & & & & \\ \hline Number of Trades & 184,000 & 15 & 216,000 & 400,000 \\ \hline Headcount & 50,000 & & 25 & 40 \\ \hline Customer Contacts & 15,000 & 37,500 & & 87,500 \\ \hline Computer Time & 8,400 & 132,680 & & 147,680 \\ \hline Number of Accounts & 10% & 14,400 & & 22,800 \\ \hline% of Sophisticated Trades & & 47% & 30% \\ \hline \end{tabular} Data and Transaction Processing \begin{tabular}{|l|l|} \hline Trade related & $1,200,000 \\ \hline \end{tabular} Trans. Fee $100/ trade \begin{tabular}{|l|rr|lr|} \hline & \multicolumn{2}{|l|}{ W400 } & \multicolumn{2}{|l|}{ W600 } \\ \hline Annual Lease & $300,000 & $350,000 \\ \hline Hourly Charge & $ & 250 & $ & 500 \\ \hline Usage (Hours) & 2,800 & 2,000 \\ \hline \multicolumn{1}{|l|}{} & & \\ \cline { 1 - 3 } Masterson Hrs \end{tabular} Question 1 Sales Office Profit - SOPAS Question 3 Sales Office Profit - ABC HSO GSO Profit Profit Question 4 Breakeven Sales FC/CM% HSO Traditional BE Sales Traditional ABC BE Sales ABC
