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File Home Insert Page Layout Formulas Data Review X Times New Roman 12 ' ' Paste BIU D A Undo Clipboard 5 Font G

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File Home Insert Page Layout Formulas Data Review X Times New Roman 12 ' ' Paste BIU D A Undo Clipboard 5 Font G 23. B C D E F G H HTM241 EX7-1: Should we lease the space (allocating indirect cots) Your fnend owns a restaurant consisted of three departments. The financial information is as follows Dining Room Coffee Shop Lounge Total Sales revente 200,000 130,000 150,000 480,000 Direct Costs 150,000 125,000 120,000 395,000 Contributory income 50,000 5,000 30,000 $5,000 Indirect costs 51.000 Operating income 34.000 Pete approached your friend and offered to lease the space of coffee shop for $9,600 a year. Your friend asked your opinion on whether she should lease the coffee shop space. You conducted an analysis and came up with the following estimates for leasing out the coffee shop space Total indirect cost would go down to $45,000 Dining room's revenue and direct costs would not be affected Lounge's revenue would reduce by $12,000 and direct costs would reduce by $5,000 2001. What would be the revense and direct costs of the Lounge if leasing out the coffee shop 02. What would be the are tal de rost if leasing at the coffee shop

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