Samsong has two product groups (Government group and International group) that sell laptop computer in different markets. Government group contracts with government agencies to manufacture and sell products. Existing contracts call for revenues of $1 million per year for the current and next year. International group sells its products to foreign buyers. International group lost its largest buyer to its competitor. So, revenus for the next year will decrease to $0.5 million from $1.5 revenue for the current year. Both product groups are profit centers. Government group and International group have their own products that differe in some ways but share a common underlying technology developed in the R&D group of Samsong. So, the R&D group costs are assigned to two product groups. The variable cost of Government group and Internatioal group is 50 percent of revenues. The only fixed cost in Samsong is its R&D group. Annual expense for the R&D group is $0.6 million for the curretn and next year. These expenses do not vary with revenues of production costs. R&D group costs are included in calculating profit for the Government group and International group. Two ways of assining the R&D group costs to each product group are (1) group revenues, and (2) an even 50-50 split. Required: a. Calculate Net income of two product groups for the current year, using the two alternative allocation ways of R&D group costs. b. Calculate Net income of two product groups for the next year, using the two alternative allocation ways of R&D group costs. c. If you are a manager of Government group, which allocation method do you favor? Why?