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Richard is the operating manager of Sheridan, a company that manufactures three different types of all-terrain vehicles: fourwheelers, personal watercraft, and snowmobiles. Naturally, Richard has
Richard is the operating manager of Sheridan, a company that manufactures three different types of all-terrain vehicles: fourwheelers, personal watercraft, and snowmobiles. Naturally, Richard has the opportunity to test all of these products for qualitycontrol purposes. At the end of the year, Richard needs to perform a profitability analysis for each product line to better evaluate the company's pricing strategy. He has a gut feeling that the company has room to increase selling prices in the snowmobile category, but he wants to see what the financials look like before he makes a case to the CEO. He has gathered the following information. The costs for the three support departments, Payroll, Maintenance, and IT, are allocated to the product lines according to number of employees, maintenanc hours used, and IT hours used, respectively. Use Excel to allocate the three support department costs to the three product lines using the reciprocal method. (Round answers to 2 decimal places, e.g. 15.25.)
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