Icon.com sells software and provides consulting services to companies that conduct business over the internet. The company is organized into two lines of business (software and consulting), and profit statements are prepared as follows:

	Software	Consulting
Sales	$14,456,000	$7,784,000
Less: direct sales	5,820,000	4,550,000
Less: allocated costs	5,280,000	1,780,000
Income before taxes	$3,356,000	$1,454,000

Direct costs include costs that are easily associated with each line of business. For software, this includes the salary of programmers, the cost of computers used by programmers, and the cost of software manuals sold to customers. For consulting, direct costs include consultant salaries, computer costs, and travel costs. Allocates costs include costs that are not directly traced to the business units. These costs inlcude employee benefits, rent telecommunications costs, and general administrative costs, such as the salary of the CEO of Icon.com

At the start of 2014, allocated costs were estimated as follows:

Employees Benefits	$2,500,000
Rent	1,080,000
Telecommications	509,000
General and administrative costs	2,971,000
Total	$7,060,000

In the past, allocations have been based on the headcount (the number of employees in eachbusiness unit.) Software had 450 employees and consulting had 150 employees. The new controller of Icon.com believes that the key driver of employee benefits and telecommunications costs is headcount. However, rent is driven by space occupied, and general and administerative costs are driven by relative sales. Icon.com rents 40,000 square feet; approximately 20,000 is occupied by software employees and 20,000 by consulting personnel.

Prepare profit reports for software and consulting assuming the company allocates costs using headcount, space occupied, and sales as allocation bases.