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Requirements 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. 2. Allocate indirect costs to the three divisions using each of
Requirements 1. Calculate division margins in percentage terms prior to allocating fixed overhead costs. 2. Allocate indirect costs to the three divisions using each of the three allocation bases suggested. For each allocation base, calculate division operating margins after allocations in dollars and as a percentage of revenues. divisions? Why? reallocating resources to other divisions) as a result of your analysis? If so, 3. Discuss the results. How would you decide how to allocate indirect costs to the 4. Would you recommend closing any of the three divisions (and possibly which division would you close and why
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