Gerry & Co (GC) is a small bakery chain with four outlets in Singapore. Its first retailoutlet
Question:
Gerry & Co ("GC") is a small bakery chain with four outlets in Singapore. Its first retailoutlet also serves as its corporate office, and is located in an old shop house along Sims Road. The corporate office consists of two departments: Admin and Innovation. Currently, the admin department provides its services to other departments and retail outlets, and allocates its costs to these departments and retail outlets based on headcount. On the other hand, the innovation department which supports only the retail outlets, allocates its costs to retail outlets based on the annual sales dollars of each outlet. The following table shows the annual budgets of each support department, the headcount for each department and the annual sales for each retail outlet.
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