Regarding Opera Food \& Beverage Company in Sydney, address the issue of fixed administrative expenses of $18,800,000 by; (a) Showing the allocation of the fixed administrative expenses among the three restaurants for this year using sales dollars as an allocation base. (b) Calculating the change in each restaurant's allocated cost from last year to this year. (c) Commenting on the usefulness of sales dollars as an allocation base. (d) Explaining the possible reasons why the manager of Malabar Garden is unhappy with the amount charged to Malabar Garden Restaurant this year. Table 1: Number of employees and net income (loss) The Production Manager of Bright (USA) Inc., Ronnie Stewart provided information about the subsidiary's annual fixed costs of $850,000. For a new product to be manufactured known as Robotec, its selling price will $8.50 with variable cost of $0.20. The combined state and federal tax rate currently is 30 percent. Ronnie is wondering on the number of units need to make and sell each year to earn an after-tax profit of $250,000. At the same time, Ronnie is facing a situation where he is considering 2 options: Option 1: To pay royalty to supplier Alpha of 10%. Option 2: To pay royalty of 6.5% to supplier Beta, but, in this option the variable cost will increase to $0.25. In both situations, Ronnie is clueless on the number of units the company must make and sell to generate $250,000 profit after taxes. The Quality Manager of Bright (USA) Inc., Sarah McMahon, is unsure on how to analyze the cost of quality and its performance. Bright (USA) Inc. has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below. Product Development Manager at Bright (USA) Inc., Kent Duncan is considering to add self-service car wash as a new venture for the company. Kent Duncan is exploring the possibility of opening a self-service car wash and operating it for the next five years as additional revenue to the company. He has gathered the following information which is recorded below: a. A building in which a car wash could be installed is available under a five-year lease at a cost of $1,700 per month. b. Purchase and installation costs of equipment would total $200,000. In five years the equipment could be sold for about 10% of its original cost. C. An investment of an additional $2,000 would be required to cover working capital needs for cleaning supplies, change funds, and so forth. d. Both a wash and a vacuum service would be offered. Each customer would pay $2.00 for a wash and $1.00 for access to a vacuum cleaner. e. The only variable costs associated with the operation would be 20 cents per wash for water and 10 cents per use of the vacuum for electricity. f. In addition to rent, monthly costs of operation would he; cleaning, $450; insurance, $75; and maintenance, $500. g. Gross receipts from the wash would be about $1,350 per week. According to the experience of other car washes, 60% of the customers using the wash would also use the vacuum. Kent, after consultation with the management, has set up a policy where the car wash will not be opened unless it provides at least a 10% return. In Sydney, Australia, a subsidiary of Bright Inc., Opera Food \& Beverage Company owns and operates three restaurants in Sydney. The company allocates its fixed administrative expenses to the three restaurants on the bassis. If sales dollars. Last year the fixed administrative expenses totaled $18,800,000 and were allocated as shown in the table below. This year the Malabar Garden Grill restaurant doubled its sales to $165 million. The sales levels in the other two restaurants remained unchanged. The company's sales data for this year were also shown in table 2 below. Fixed administrative expenses for this year remained unchanged at $18,800,000. Finally, the CEO of Bright Inc. has bearr about Balanced Scorecard and how it can improve the performance measurement system. He attended a seminar about Balanced Scorecard and found some possible measures to be included in the Balanced Scorecard as shown in Table 4 below. However, he is unsure in which of the 4 perspectives of Balanced Scorecard, each of the measures listed in Table 4, belongs to. He is also still in the process to understand the possible advantages and disadvantages of Balanced Scorecard system before deciding whether.or not Bright Inc. need to adapt such system. Required: Read the above case about Bright Inc. carefully, provide a report to meet the requirements of the management as described below in the Project Guide section. Bright Inc. is a multinational company based in Dubai. It has operational businesses in three countries which are the USA, Australia and New Zealand. In the USA, specifically located in Houston, Texas, Bright Inc. through its subsidiary, Bright (USA) Inc. is running a small consumer products manufacturing facilities and at the same time is on the verge of exploring a new business venture, in terms of car wash facilities. In Sydney, Australia, Bright Inc. through its subsidiary, Opera Food \& Beverage Company had successfully operated a chain of restaurant business. So, far there are three restaurants operating in Sydney. In Waikato, New Zealand, Bright Inc. acquired a local company, NZ Dairy where the focus is on dairy products specifically on producing butter. The annual cost of corporate headquarters of Bright Inc. amounting to $20,000,000 which includes the office expenses, salaries, and legal and accounting fees. The following table summarizes operating details of each of the three subsidiaries in terms of number of employees and net income or loss in the most recent year: Regarding Opera Food \& Beverage Company in Sydney, address the issue of fixed administrative expenses of $18,800,000 by; (a) Showing the allocation of the fixed administrative expenses among the three restaurants for this year using sales dollars as an allocation base. (b) Calculating the change in each restaurant's allocated cost from last year to this year. (c) Commenting on the usefulness of sales dollars as an allocation base. (d) Explaining the possible reasons why the manager of Malabar Garden is unhappy with the amount charged to Malabar Garden Restaurant this year. Table 1: Number of employees and net income (loss) The Production Manager of Bright (USA) Inc., Ronnie Stewart provided information about the subsidiary's annual fixed costs of $850,000. For a new product to be manufactured known as Robotec, its selling price will $8.50 with variable cost of $0.20. The combined state and federal tax rate currently is 30 percent. Ronnie is wondering on the number of units need to make and sell each year to earn an after-tax profit of $250,000. At the same time, Ronnie is facing a situation where he is considering 2 options: Option 1: To pay royalty to supplier Alpha of 10%. Option 2: To pay royalty of 6.5% to supplier Beta, but, in this option the variable cost will increase to $0.25. In both situations, Ronnie is clueless on the number of units the company must make and sell to generate $250,000 profit after taxes. The Quality Manager of Bright (USA) Inc., Sarah McMahon, is unsure on how to analyze the cost of quality and its performance. Bright (USA) Inc. has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below. Product Development Manager at Bright (USA) Inc., Kent Duncan is considering to add self-service car wash as a new venture for the company. Kent Duncan is exploring the possibility of opening a self-service car wash and operating it for the next five years as additional revenue to the company. He has gathered the following information which is recorded below: a. A building in which a car wash could be installed is available under a five-year lease at a cost of $1,700 per month. b. Purchase and installation costs of equipment would total $200,000. In five years the equipment could be sold for about 10% of its original cost. C. An investment of an additional $2,000 would be required to cover working capital needs for cleaning supplies, change funds, and so forth. d. Both a wash and a vacuum service would be offered. Each customer would pay $2.00 for a wash and $1.00 for access to a vacuum cleaner. e. The only variable costs associated with the operation would be 20 cents per wash for water and 10 cents per use of the vacuum for electricity. f. In addition to rent, monthly costs of operation would he; cleaning, $450; insurance, $75; and maintenance, $500. g. Gross receipts from the wash would be about $1,350 per week. According to the experience of other car washes, 60% of the customers using the wash would also use the vacuum. Kent, after consultation with the management, has set up a policy where the car wash will not be opened unless it provides at least a 10% return. In Sydney, Australia, a subsidiary of Bright Inc., Opera Food \& Beverage Company owns and operates three restaurants in Sydney. The company allocates its fixed administrative expenses to the three restaurants on the bassis. If sales dollars. Last year the fixed administrative expenses totaled $18,800,000 and were allocated as shown in the table below. This year the Malabar Garden Grill restaurant doubled its sales to $165 million. The sales levels in the other two restaurants remained unchanged. The company's sales data for this year were also shown in table 2 below. Fixed administrative expenses for this year remained unchanged at $18,800,000. Finally, the CEO of Bright Inc. has bearr about Balanced Scorecard and how it can improve the performance measurement system. He attended a seminar about Balanced Scorecard and found some possible measures to be included in the Balanced Scorecard as shown in Table 4 below. However, he is unsure in which of the 4 perspectives of Balanced Scorecard, each of the measures listed in Table 4, belongs to. He is also still in the process to understand the possible advantages and disadvantages of Balanced Scorecard system before deciding whether.or not Bright Inc. need to adapt such system. Required: Read the above case about Bright Inc. carefully, provide a report to meet the requirements of the management as described below in the Project Guide section. Bright Inc. is a multinational company based in Dubai. It has operational businesses in three countries which are the USA, Australia and New Zealand. In the USA, specifically located in Houston, Texas, Bright Inc. through its subsidiary, Bright (USA) Inc. is running a small consumer products manufacturing facilities and at the same time is on the verge of exploring a new business venture, in terms of car wash facilities. In Sydney, Australia, Bright Inc. through its subsidiary, Opera Food \& Beverage Company had successfully operated a chain of restaurant business. So, far there are three restaurants operating in Sydney. In Waikato, New Zealand, Bright Inc. acquired a local company, NZ Dairy where the focus is on dairy products specifically on producing butter. The annual cost of corporate headquarters of Bright Inc. amounting to $20,000,000 which includes the office expenses, salaries, and legal and accounting fees. The following table summarizes operating details of each of the three subsidiaries in terms of number of employees and net income or loss in the most recent year