15-22 Cost allocation and decision making. Travel Ready has three divisions: United States, Europe, and Caribbean.
	Corporate headquarters is in Boston. Travel Ready corporate headquarters incurs costs of $34,000,000 annually,
	which is an indirect cost of the divisions. Corporate headquarters currently allocates this cost to the divisions based on
	the revenues of each division. The president has asked each division manager to suggest an allocation base for the corporate
	headquarters costs from among revenues, division margin, direct costs, and number of employees. The following is relevant
		United States	Europe	Caribbean
	Revenues	$40,000,000	$34,000,000	$26,000,000
	Direct costs	25,000,000	21,000,000	14,000,000
	Division margin	$15,000,000	$13,000,000	$12,000,000
	Division margin percentage	37.5%	38.2%	46.2%
	Number of employees	15,000	20,000	10,000
1	Allocate the corporate headquarters costs of Travel Ready to each of the three divisions using revenues,
	direct costs, division margin, and number of employees as the allocation bases. Calculate operating margins
2	Which method of allocation would you expect each manager to recommend? Explain.
3	What factors would you consider in deciding which allocation base Travel Ready should use?
4	Suppose Travel Ready decides to use number of employees as the allocation base.
	Should the European division be closed? Why or why not?