WASHINGTON CORPORATION is a decentralized operation with 4 operating divisions: Chairs, Microwaves, Shoes & Widgets. As controller of NAPOLEON, you are preparing a divisional performance presentation to senior management. Summary figures for the four divisions for the most recent years are as follows (in millions): Chairs Total Revenues 8,000S 16,0 4,800S 3,200 $ 3 3,800 3,500 S 25,30 perating Income S 5,000S 1,000S 1,000S (300)S 6,700 Identifiable assets Number of em 9.000 12.000 6,000 3,000 30,00 The company currently allocates is common corporate costs to each division using a single cost pool based on revenues. For the most recent year, these costs totaled $3,200 (in millions). The divisional managers all share in a bonus pool based on "division income". For this purpose, "division income" is calculated as operating income minus allocated corporate costs. There has been some negative feedback and grumblings about the current allocation system, and so you have suggested a revised system which would break these corporate costs into 4 separate pools, with allocation bases as shown below: Corporate Cost Category Amount Cost Pool Allocation Base Interest- debt 2,000 Cost pool 1 Identifiable assets 150 Cost pool 2 Division revenues 110 Cost pool 2 Division revenues 200 Cost pool 2 Division revenues rate salaries and marketing General ivision revenues eg Research & development Public affairs Personnel and payroll Total 200 Cost po 200 Cost pool 3 Positive operating