Can you help with part A?

Canarie.com sells software and provides consulting services to companies that conduct business over the Internet. The company is organized into two lines of business (software and consulting), and profit statements are prepared as follows: Sales Less direct costs Less allocated costs Income before taxes Software $18,900,000 7,560,000 6,615,000 $4,725,000 Consulting $12,600,000 5,040,000 2,205,000 $5,355,000 Direct costs include costs that are easily associated with each line of business. For software, this includes the salary of programmers, the cost of computers used by programmers, and the cost of software manuals sold to customers. For consulting, direct costs include consultant salaries, computer costs, and travel costs. Allocated costs include costs that are not directly traced to the business units. These costs include employee benefits, rent, telecommunications costs, and general and administrative costs, such as the salary of the CEO of Canarie.com. At the start of 2020, allocated costs were estimated as follows: Employee benefits Rent Telecommunications General and administrative costs Total $3,150,000 1,260,000 630,000 3,780,000 $8,820,000 In the past, allocations have been based on headcount (the number of employees in each business unit). Software had 375 employees and consulting had 125 employees. The new controller of Canarie.com believes that the key driver of employee benefits and telecommunications costs is headcount. However, rent is driven by space occupied, and general and administrative costs are driven by relative sales. Canarie.com rents 50,400 square feet; approximately 25,200 is occupied by software employees and 25,200 by consulting personnel. (a) Your answer is partially correct. Prepare profit reports for software and consulting assuming the company allocates costs using headcount, space occupied, and sales as allocation bases. Software Consulting Sales $ 18900000 $ 12600000 Less Direct costs Allocated costs Income before taxes $ $ e Textbook and Media Save for Later Attempts: 1 of 3 used Submit Answer (b) Which provides the best information on profitability: a single overhead cost pool with headcount as the allocation base, or multiple cost pools using headcount, sales, and space occupied? Assume the controller's assumptions are correct. Multiple cost pools provide(s) the best information on profitability