Paver.com sells software and provides consulting services to companies that conduct business over the Internet. The

compary is organized into two lines of business $($software and consulting$),$ and profit statements are prepared as

follows:

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. Allocated costs include costs that

are not directly traced to the business units. These costs include employee benefits, rent, telecommunications costs,

and general and administrative costs, such as the salary of the CEO of

Paver.com.

At the start of $2020,$ allocated costs were estimated as follows:

In the past, allocations have been based on headcount $($the number of employees in each business unit$).$ Software had

$375$ employees and consulting had $125$ employees. The new controller of

Pawer.com believes that the key driver of

employee benefits and telecommunications costs is headcount. However, rent is driven by space occupied, and general

and administrative costs are driven by relative sales.

Paver.com rents $45,600$ square feet; approximately $22,800$ is

occupied by software employees and $22,800$ by consulting personnel.

$($a$)$

Prepare profit reports for software and consulting assuming the company allocates costs using headcount, space

occupied, and sales as allocation bases.