please complete part 1,2,3,4
Avequirement 3. Compare and dsciss the resuls of sequrements 1 and 2 If division podornance incentives ate based on operaeng margn percentage, which dveron mould be mont seceptive to the rew allocation scheme? Which division would be the least receptive? Why? When corporace cyetreakt is allocated to the dvisions on the basis of dvision maging (roquarement 1). ace (is) proficable and the Papert division is Ith dision is not protitatie ard the division is the mont protatide It division fertortarke is triked to operating mapgn percentages. Pulp will wessit tivs new way of allocating corporate coats, which causes its operatiog margn th decreate to a last (yeghtive operatung mavgin)." will weicome the change-is operating thayg percentage rises the most. Requirement 4. Which alociation sctweme stwuld Kunden Coeporation use? Why? How might Ciof overcome any obgections that may ardie from the duisiore? The ther dyisiors, Gratt may coporate overteid to divisions when evaluating performance Requirement 2. Allocate 2017 fred costs using the allocalion bases soggested ty Crolt. What is each dvision's opeeating margin percentage under the new alocicion schere? Allocate the fixed copporate-overtwoad costs, then calculate the division opeeating margins is doliars and as a percentage of revenue. FRound allocition proporions to one decima Requirements 1. Allocate 2017 fixed corporate-overhead costs to the three divisions using division margin as the allocation base. What is each division's operating margin percentage (division margin minus allocated fixed comorate-overhead costs as a percentage of revenues)? 2. Allocate 2017 fixed costs using the allocation bases suggested by Becker. What is each division's operating margin percentage under the new allocation scheme? 3. Compare and discuss the results of requirements 1 and 2 . If division performance incentives are based on operating margin percentage, which division would be most receptive to the new allocation scheme? Which division would be the least receptive? Why? 4. Which allocation scheme should Kunden Corporation use? Why? How might Becker overcome any objections that may arise from the divisions? Data table Data table Kunden Corporation has three divisions: pulp, papet, and fbers. Kunden's new controlec, Feix Becker, is teriening the allocation of fixed corporase-overtiead costs to the three Unail now. Kunden Corporation has allocaled fired coporateoveitind cosis to the divisions. He is presented whth the folowing intormation for each division for 2017 : divisions on the basis of division margins. Becker isks for a list of costs that compnse fired coporate overtheid and suggests the following new alloc ation bases: (Click the icon to view the fored corporate orertead and new allocation bases.) Prquirement 1. Alocate 2017 fored corporate-owerhead costs to the three divisions using dision margin as the allocation base. What is each divs iona aperat ng ifangin percertage (division marg in minus alocaled fixed comporate-overhead costs as a percentage of revenues)? place, , and dollar arsoumts to the neagest dollar. Enter openating margin pecentages to one decimal, .)
