Terrific Threads is an upscale boutique that operates various stores throughout Florida. The company, which has three divisions (Miami, Naples, and Tampa), reported the following information for the year just ended (in thousands):

	Miami			Naples			Tampa
Sales revenue	$	11,000		$	8,000		$	7,025
Divisional contribution margin		7,400			5,400			4,500
Profit margin controllable by division manager		2,500			2,900			2,000
Divisional profit margin		2,000			900			400

Terrific Threads also reported $800 of common fixed expenses that top management wants to allocate to the divisions on the basis of sales revenue. As the company's chief executive officer notes, "Each division helped to incur a portion of these costs and, as a result, each should absorb its fair share." The firm has adopted various responsibility accounting procedures to evaluate division personnel.

Required:

1. Compute the company's total sales revenue.

2. Calculate the amount of variable operating expense incurred by the Naples Division.

3. Calculate the fixed costs controllable by Miami's management.

4. Calculate the fixed costs traceable to the Tampa Division but controllable by others.

6. If the company follows the desires of top management, how much of the common fixed expenses would be allocated to the Tampa Division? (Round final answer to the nearest whole percent.)

7. Do cost allocations such as those in part "F" typically appear on a segmented income statement?

A Total sales revenue Variable operating expense of Naples Common fixed costs of Tampa controllable by others Cost Allocations appear on a segmented income statement C Fixed cost controllable by Miami's F| Common fixed expenses allocated to Tampa