Stable Enterprises is organized into two geographic divisions (Asia and Europe) and a corporate headquarters. Late in year 7, the Stable Finance Department prepared financial operating plans (budgets) for the two divisions, shown as follows (in thousands of dollars). Revenues Asia $85,800 Direct division costs Operating profit before allocation. Europe $109,200 42,900 65,520 $42,900 $ 43,680 Corporate overhead costs (in thousands of dollars) are expected to be $54,000 in year 8. Of the $54,000, $34,500 is fixed and $19,500 is variable, with respect to revenue. Division managers are evaluated and compensated in part on division operating profit relative to the budget. Required: a. Suppose corporate overhead is allocated to the two divisions based on relative revenue. What are the budgeted operating profits in each division for year 8 after the corporate costs are allocated? b. At the end of year 8, actual corporate costs incurred (in thousands of dollars) were $27,000. Of the $27,000, $14,500 was fixed. Actual results (in thousands of dollars) in the two divisions are as follows. Europe $109,200 65,520 Revenues Asia $85,800 Direct costs 42,900 Operating profit before allocation $42,900 $ 43,680 What are the operating profits in each division for year 8 after the corporate costs are allocated? Complete this question by entering your answers in the tabs below. Required A Required B Suppose corporate overhead is allocated to the two divisions based on relative revenue. What are the budgeted operating profits in each division for year 8 after the corporate costs are allocated? (Do not round intermediate calculations.) Asia Europe Total Revenues Direct costs Operating profit before allocations $ 0 $ 0 $ 0 Corporate costs Operating profit $ 0 $ 0 0 Required A Required B What are the operating profits in each division for year 8 after the corporate costs are allocated? (Do not round intermediate calculations.) Asia Europe Total Revenues Direct costs Operating profit before allocations $ 0 $ 0 $ 0 Corporate costs Operating profit $ 0 0 $