During 20XX, The Rotating Rock Resort \& Casino launched a "super stayer" package which offered visitors a steep discount if they paid in advance for all of the resort's amenities. In total, the components of the super stayer package include: 2 nights in a suite at the casino's hotel, two rounds of golf at the world-famous Mcllroy Dunes golf course, two "dinner for two"s at resort's newest restaurant--Majesty, and a pair of tickets for the current entertainment event at the casino's event center. This promotion was heavily advertised and central management at Rotating Rock decided to allocate this joint advertising cost to the different components of the resort using a simple allocation method based upon the average daily visitors that typically use that component of the resort. The joint revenues from the bundle were allocated to the components of the bundle using the incremental method. Under this incremental method, revenues were assigned to the components in the following order: hotel, restaurant, golf, event center. At the end of 20XX, revenues and expenses were reported for the different departments at Rotating Rock Resort \& Casino and the bottomline income for the event center was less than desireable. Central management shared this financial information with the director of the event center and made a point that profit margins need to increase or the resort will start committing less available funds to the event center. This will prevent the event center from booking desireable, national acts in the future. The Task at Ifand Assume the role of the coordinator of the event center. Review the financials provided to you by central management and make the case that the reason for the event center's lack of profitability wasn't a lack of usage but the unfair methodologies that were used to allocate revenues and costs for the Super Stayer package. To substantiate your argument, you should recalculate what profit levels would have been if "fairer" methodologies were used to spread out these revenues and costs. After you've recalculated the event center's profit, write an email to the head of central management expressing your grievance. Make sure that you reference the information you calculated (and any other qualitative factors you can think of) in this email. Listed below is information detailing how the joint costs of advertising the "Super Stayer" package were allocated to the different departments at Rotating Rock Resort \& Casino: 20XX JR Allocation Listed below is information pertaining to the stand-alone prices of the components of the "Super Stayer" package and information on how the joint revenues of the "Super Stayer" package were allocated to the different departments at Rotating Rock Resort \& Casino: isted below is the quantity of super stayer packages sold during the 20XX business year as well as Rotating Rock Resort \& Casino's departmental income statement. The figures listed on this document stem only from the revenues and costs directly related o the super stayer package. The Rotating Rock Resort \& Casino keeps track of the percentage of customers a department could accomodate that it actually services. This metric is referred to as the company's fill rate. In the year preceding 20XX, central management let each department budget and pay for its own advertising costs. The following information details the various departments fill rates and advertising costs during the prior year. This will be useful in helping you, the event center coordinator, construct an argument why the allocation of costs and revenues unfairly affected the event center's profitability during 20XX. Done AC243 Allocation \& Variance Assig... Utilize other methodologies for allocating out the joint costs of advertising besides the simple method using the number of visitors. For the stand-alone method, allocate the joint costs of advertising proportionate to the proportion of advertising costs each deparment incurred during the prior year. For the incremental method, you are free to order the departments in any way that you wish but be mindful that you are going to have to state your rationale why in your email to central management. Allocate revenues to the components of the super stayer package using the stand-alone method. Done AC243 Allocation \& Variance Assig... Utilize other methodologies for allocating out the joint costs of advertising besides the simple method using the number of visitors. For the stand-alone method, allocate the joint costs of advertising proportionate to the proportion of advertising costs each deparment incurred during the prior year. For the incremental method, you are free to order the departments in any way that you wish but be mindful that you are going to have to state your rationale why in your email to central management. Allocate revenues to the components of the super stayer package using the stand-alone method. Recalculate Rotating Rock's departmental operating income using the stand-alone method to allocate bundled revenues and the methodology of your choice to allocate out the joint costs of advertising. Assume that all variable service costs and other fixed costs will be the same as they were on the departmental income statement provided by central management. Hint: the allocation of revenues you calculated using the stand-alone method are per super stayer package. You will need to multiply the per package allocation by the total quantity of packages sold to find the total revenues of each department. Rotating Rock Resort \& Casino operates in a market where there is competition from other similar businesses. These other businesses offer similar "bundled" packages to Rolling Rock's super stayer package. The information provided below pertains to the budgeted and actual sizes of the customer base for bundled packages at resorts within Rotating Rock's market: In the space provided below, please act as the event center coordinator and write an email to central management expressing your concerns about the way that cost and revenues were allocated from the super stayer package. You may include any other information that you think will help support your argument. As is true with all business communications, you want your communication to be long enough to cover all of the valid points but short enough to directly get to your point about the situation at hand. During 20XX, The Rotating Rock Resort \& Casino launched a "super stayer" package which offered visitors a steep discount if they paid in advance for all of the resort's amenities. In total, the components of the super stayer package include: 2 nights in a suite at the casino's hotel, two rounds of golf at the world-famous Mcllroy Dunes golf course, two "dinner for two"s at resort's newest restaurant--Majesty, and a pair of tickets for the current entertainment event at the casino's event center. This promotion was heavily advertised and central management at Rotating Rock decided to allocate this joint advertising cost to the different components of the resort using a simple allocation method based upon the average daily visitors that typically use that component of the resort. The joint revenues from the bundle were allocated to the components of the bundle using the incremental method. Under this incremental method, revenues were assigned to the components in the following order: hotel, restaurant, golf, event center. At the end of 20XX, revenues and expenses were reported for the different departments at Rotating Rock Resort \& Casino and the bottomline income for the event center was less than desireable. Central management shared this financial information with the director of the event center and made a point that profit margins need to increase or the resort will start committing less available funds to the event center. This will prevent the event center from booking desireable, national acts in the future. The Task at Ifand Assume the role of the coordinator of the event center. Review the financials provided to you by central management and make the case that the reason for the event center's lack of profitability wasn't a lack of usage but the unfair methodologies that were used to allocate revenues and costs for the Super Stayer package. To substantiate your argument, you should recalculate what profit levels would have been if "fairer" methodologies were used to spread out these revenues and costs. After you've recalculated the event center's profit, write an email to the head of central management expressing your grievance. Make sure that you reference the information you calculated (and any other qualitative factors you can think of) in this email. Listed below is information detailing how the joint costs of advertising the "Super Stayer" package were allocated to the different departments at Rotating Rock Resort \& Casino: 20XX JR Allocation Listed below is information pertaining to the stand-alone prices of the components of the "Super Stayer" package and information on how the joint revenues of the "Super Stayer" package were allocated to the different departments at Rotating Rock Resort \& Casino: isted below is the quantity of super stayer packages sold during the 20XX business year as well as Rotating Rock Resort \& Casino's departmental income statement. The figures listed on this document stem only from the revenues and costs directly related o the super stayer package. The Rotating Rock Resort \& Casino keeps track of the percentage of customers a department could accomodate that it actually services. This metric is referred to as the company's fill rate. In the year preceding 20XX, central management let each department budget and pay for its own advertising costs. The following information details the various departments fill rates and advertising costs during the prior year. This will be useful in helping you, the event center coordinator, construct an argument why the allocation of costs and revenues unfairly affected the event center's profitability during 20XX. Done AC243 Allocation \& Variance Assig... Utilize other methodologies for allocating out the joint costs of advertising besides the simple method using the number of visitors. For the stand-alone method, allocate the joint costs of advertising proportionate to the proportion of advertising costs each deparment incurred during the prior year. For the incremental method, you are free to order the departments in any way that you wish but be mindful that you are going to have to state your rationale why in your email to central management. Allocate revenues to the components of the super stayer package using the stand-alone method. Done AC243 Allocation \& Variance Assig... Utilize other methodologies for allocating out the joint costs of advertising besides the simple method using the number of visitors. For the stand-alone method, allocate the joint costs of advertising proportionate to the proportion of advertising costs each deparment incurred during the prior year. For the incremental method, you are free to order the departments in any way that you wish but be mindful that you are going to have to state your rationale why in your email to central management. Allocate revenues to the components of the super stayer package using the stand-alone method. Recalculate Rotating Rock's departmental operating income using the stand-alone method to allocate bundled revenues and the methodology of your choice to allocate out the joint costs of advertising. Assume that all variable service costs and other fixed costs will be the same as they were on the departmental income statement provided by central management. Hint: the allocation of revenues you calculated using the stand-alone method are per super stayer package. You will need to multiply the per package allocation by the total quantity of packages sold to find the total revenues of each department. Rotating Rock Resort \& Casino operates in a market where there is competition from other similar businesses. These other businesses offer similar "bundled" packages to Rolling Rock's super stayer package. The information provided below pertains to the budgeted and actual sizes of the customer base for bundled packages at resorts within Rotating Rock's market: In the space provided below, please act as the event center coordinator and write an email to central management expressing your concerns about the way that cost and revenues were allocated from the super stayer package. You may include any other information that you think will help support your argument. As is true with all business communications, you want your communication to be long enough to cover all of the valid points but short enough to directly get to your point about the situation at hand