Magnum Insurance LLC offers two different products, personal liability and commercial liability policies. Sales for the last year were as follows: Policies sold Total revenue Personal 8,000 $800,000 Commercial 7,000 $490,000 Magnum has four departments: Marketing, Claims, Adjusting, and Settlement. Fixed expense information is as follows: Fixed expenses Staff hours Marketing $140,000 7,000 Claims $50,000 5,000 Adjusting $80,000 1,000 Settlement $60,000 1,000 Total Time % Unit Time in Hours Activity Marketing Claims Adjusting Settlement Total 50% 25% 15% 10% 100% .1 .1 15 3 # of Activities Personal Commercial 24,000 42,000 16,000 28,000 5 50 200 100 The company wants to allocate fixed expenses based on time-driven activity-based costing. Ignore income taxes. Required: Advise management