Compton Information Services, Inc., has two service departments: human resources and billing. Comptons operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows.

	Human Resources			Billing			Health Care			Retail			Legal Services
Number of employees		10			20			80			60			40
Annual cost*	$	720,000		$	1,428,000		$	6,000,000		$	4,800,000		$	2,800,000
Annual revenue							$	9,000,000		$	6,200,000		$	4,800,000

*This is the operating cost before allocating service department costs.