(10 marks) Question Five You have the folowing intormation about a restaurant complex consisting of three departments Lounge Total Dining Room Coffee Shop Contributony Income Statement Sales Revenue Direct Costs Contnbutory Income Indirect coss Operating Income 194 800 135 800 1 483 400 78008.200 152,800 40 400 52.000) The owner wants to allocate the indirect costs quanterly to each department based on squane footage to get a better picture of how each department is doing Dining room 2200 sq ft Coffee Shop 840 sqt Lounge 960 sq ft Alocate the indirect costs as indicated B A The owner has an offerfrom te souvenr store operator who is wiling to rent the coffee shop space for$9,600 a year Advise the owner whether to accept the offer C Belore making a final decision, the owner of the restaurant decides to evaluate the changes to indirect costs if the coffee shop space is rented Admin & General Advertising Ubldies R&M Insurance Interest Depreciaiorn 14,100 9,800 4,500 4 200 3.600 5,400 10.400 52000 Costs Coffee Shop Rented 13,200 9,000 4,100 3,800 3,100 5,400 7,100 45,700 ?fthe coffee shop is not operated it s estimated that lounge sales revenue wil decine by $11,700 a year ad lounge dinot costs will go down by $8,100. Dining room sales revenue and direct costs will not be affected D Should the owner accept the offer to rent out the coffee shop