i need help with QUESTION #2 please

Donatello Hotel & Casino is stated on beautiful Lake Tahoe in Nevada. The complex includes 300 room hotel, casino, and a restaurant. As Donatello's new controller, your manager asks you to recommend the basis the hotel should use for alting fired overeed cons to the three divisions in 2017. You are presented with the following income tament information for 2016 B! Click the icon to the dots) You are also give folosing data on the division (click icon to view the data) You were told that you may choose to locate indirect costs based on one of the following direct come for the number of employees. Totale overhead costs for 2015 were $54.540.000 Requirement 1. Colluto division marges in percentage tema prior to locating fixed overhead coats. Round you wowers to two decimal acom, XXX) Hotel Restaurant Casino Division margin 50 26% 40 01 63.71 Requirement 2. locate direct couts to the divisiera uning each of the three location bases pieder auch location base, celle diventering in her locations, nous and statuta locate the indirect cou, then the division operating urin in dollars and as a percentage of revenue for each weet Begin with cont blocaton teed on direct cous. Mound percentam, houding intermediate walion, to two decimat pe XXX Powder anunta e no wow. Une parenteses una sen borregatiewe Hotel Restaurant Casino Dentelle located fixed overheed costs Operating margin Operating margin D. allocating fixed overhead costs. (Round your answers to two decimal places. X.XX. Data table Casino Revenues $ Hotel Restaurant 19,654,000 $ 6,293,000 $ 9,775,000 3,725,000 12,380,000 4,493,200 Direct costs $ Segment margin 9,879,000 $ 2,568,000 $ 7,886,800 Print Done You are told that you may choose to allocate indirect the number of employees. Total fixed overhead cost Read the requirements. terms prior to allocating fixed overhead costs. (Round your answers to two decimal places, X.XX.) ht Casino % 63.71 Data table x ns using each of th pargins afte ating margin in doll Restaurant Casino ercentages, includi Hotel 75,000 Floor space (square feet) Number of employees 15,000 60,000 parest dollar Restaurant 120 30 150 % Print Donal You are told that you may choose to allocato indirect costs the number of employees. Total food overhead costs for 20- Read the requirements. argins in percentage terms prior to Requirements el CE Restaurant 40.81 % 26 % after alloc Is to the three divisions using eac Hate the division operating margin rect costs. (Round percentages, 1. Calculate division margins in percentage terms prior to allocating foxed overhead costs. 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations, in dollars and as a percentage of revenues. 3. Discuss the results. How would you decide how to allocate indirect costs to the divisions? Why? 4. Would you recommend closing any of the three divisions (and possibly reallocating resources to other divisions) as a result of your analysis? If so, which division would you close and why? dollar. Use Hotel Restaura % Print Done