6 Quick Check Question 3 Suppose square feet is used as the basis for allocating the common fixed cost of $200,000, the bar occupies 1,000 square feet and the restaurant 9,000 square feet, what would be the reported profit for each segment? (Hint: Calculate the common fixed cost allocation first) Quick Check Question 4 Reviewing the overall profitability of Hoagland, and not considering alternative uses for the square footage occupied by the bar, if Hoagland allocates its common costs to the bar and the restaurant based on square feet, should the bar be eliminated? a Bar $40,000, restaurant $450,000 b. Bar $14,000, restaurant $230,000 c. Bar ($6,000), restaurant $50,000 a. Yes b. No Use for Quick Check Questions 2 through 4 Income Statement Sales Variable costs CM Traceable FC Segment margin Common costs Profit Hoagland's Lakeshore $ 800,000 310,000 490,000 246,000 244,000 200,000 44,000 Bar $ 100,000 60,000 40,000 26,000 $ 14,000 20.000 Restaurant $ 700,000 250,000 450,000 220,000 $ 230,000 180,000 Hoagland's segmented income statement