You have the following infomation about a restaurant department comprising three Coffee Lounge 152,900 Total 473.300 Sales revenue Direct Costs 184,800 135,600 154600 29.000 127600 41.200 62.100 52,000 10,100 Indirect Costs Net Income The owner is thinking that, to get a better a picture of how each department is doing, the indirect costs should be allocated to each department on the basis of area occupied in square feet. Square feet occupied is as follows: Dining Room Coffee Shop Lounge sq. ft. 1,500 900 600 Required: (a) Allocate the indirect costs as indicated and say with reason, whether or not any of the departments should be closed. $7,000 per year. Advise the owner as to whether or not he should accept this offer analysis about his indirect costs and what would happen to them if he rented out the b) A Souvenir store operator is willing to take over the coffee shop space for a rental of (c) Before making a final choice, the operator of the restaurant decides to carry out more coffee shop space. The in formation is as follows Administrative and General Advertising and Promotion Utilities Repairs and Maintenance Insurance Interest Present Cost 14,100 9,800 4.500 4,200 3,600 5.400 10,400 Cost if Coffee shop rented 13,500 9,000 4,000 ,100 3,600 5,400 10,400 Based on this additional information, advise the owner as to whether or not he should accept this offer