Marble Company has three departments that sell fumiture: the Sofa Department, the Easy Chair Department, and the Coffee Table Department. These products are sold individually and in a bundle. Marble Company sells roughly equal quantities of the three products. Managers of the three departments are evaluated on the performance of their individual departments. The individual selling prices and per unit costs of the products are as follows:

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Read the requirements.

Requirement $1.$ Allocate the reverue from the furniture bunde purchase to each of the products using the stand$-$alone method based on the individual selling price per unit. $($Enter the allocation proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest whole dollar.$)$

$\backslash$table$[[$Component$,$Allocation Proportion$],[$Sofas$,],[$Easy chairs,$],[$Colfee tables,$],[,]]$

Requirement $2.$ Allocate the reverue from the furniture bunde purchase to each of the products using the stand$-$alone method based on cost per unit. $($Enter the allocation proportion as a decimal rounded to five decimal places. Round the revenue allocated to the nearest whale dollar.$)$

$\backslash$table$[[$Computer component,Allocation Proportion,Revenue Allocated$],[$Sofas$,,],[$Easy chairs$],[$Colfee tables,,$]]$

Requirement $3.$ Allocate the revenue from the furniture bundle purchase to each of the products using the stand$-$alone method based on physical units $($that is$,$ the number of individual units of product sold per bundle$).($Round the revenue allocated to the nearest whole dollar.$)$

$\backslash$table$[[$Computer component,Allocation Proportion,Revenue Allocated$],[$Sofas$,,],[$Easy chairs,,$],[$Coffee tables,,$],[,,]]$

Requirement $4.$ Which basis of allocation makes the most sense in this situation? Explain your answer.

Sharing on the basis of

makes the most sense. Using this mechod each division takes

Data table

$\backslash$table$[[$Furniture$,$Individual Selling Price per Unit,Cost per Unit,,$],[$Sofas$,$$$,1,200,$$$,500],[$Easy chairs,$$,500,$$$,300],[$Coffee tables,$$,300,$$$,200],[$Bundle purchase price,$$,1,600,,],[,,,,],[,,,,]]$