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Two retail stores with very different products and target customers have operated separately in the local mall for the past 10 years. This year,
Two retail stores with very different products and target customers have operated separately in the local mall for the past 10 years. This year, Paul, the owner of Sunland, bought out the owner of Coronado, with full intentions of keeping both stores in their current locations and running them the same as before. The only difference is that now the two stores will share a breakroom for the employees-before, each store had its own breakroom. At the end of this year, Paul recognized the total cost of the breakroom to be $3,100 for the year. He allocates $1,333 to Sunland using the stand-alone method. (a) Your answer is correct. If the total cost of the two breakrooms amounted to $4,300 last year, how much breakroom cost did each store incur last year? Breakroom cost $ eTextbook and Media Sunland 1849 $ Coronado 2451 Assistance Used Attempts: 1 of 3 used (b) If Paul had used the incremental method to allocate the common cost of the breakroom this year, he would have ranked Coronado the primary user. Given your answer to part (a), specify how much of the total breakroom cost this year will be allocated to each store under the incremental method. User Coronado $ Sunland Total $ eTextbook and Media Cost Save for Later Last saved 1 minute ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Assistance Used Attempts: 0 of 3 used Submit Answer
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