TenBob provides coaching and mentoring services to sportspeople across 47 professional sports clubs (clients) in Australia, spanning the sports of football and cricket. The standard fee is AUD400 for a one hour session and TenBob offers around 5,600 sessions per year. The coaches and mentors are hired on an hourly (or per session] basis and are paid AUD175/hour. Other costs involved in delivering the services are around AUD500,000 as follows: Admin & finance cost: AUD50,000 Marketing cost: AUD200,000 Relationship management cost: AUD250,000 TenBob has 47 sports clubs as clients and provides services to approximately 460 sportspeople. Three clients are as follows: Melbourne Football Club (Melbourne) - 92 sessions delivered (football) . Carlton Cricket Club (Carlton) - 193 sessions delivered (cricket) St Kilda Football Club (St Kilda) - 110 sessions delivered (football) a) If TenBob allocates the AUD500,000 of other costs based on number sessions delivered. What will be the profit per club and profit per session for each of Melbourne, Carlton & StKilda? b) Now assume TenBob allocates the AUD5600,000 of other costs based on number of clients. What will be the profit per club and profit per session for each of Melbourne, Carlton & Stkilda? An analyst educated at a famous business school in London was recently hired by TenBob. The analyst discovered the following: . Admin & marketing cost seems to be driven by number of sessions. For example, a club that requires 100 sessions per year generally involves about double the admin & finance cost of club that requires 50 sessions per year . The marketing cost depends on the type of club. Football clubs involve one third the marketing cost of cricket clubs. Of TenBob's 47 clients, 30 are football clubs with marketing cost of $3,086 and 17 are cricket clubs with marketing cost of $9,259. The relationship management costs generally apply at a per client level - it doesn't matter whether a club is a big or small client of TenBob, the company tries to provide about the same level of relationship management support c) Based on the above information, use activity based costing to determine the profit per club and profit per session for each of Melbourne, Carlton & Stkilda d) What do you notice about the profitability of the three clients? Why? e) Which costing system would you recommend - allocation based on number of sessions delivered, allocation based on number of client clubs, or allocation based on Activity Based Costing? Why