1.
The division margin in terms of percentage before allocation of fixed
Given
Hotel revenue as $16,425,000
Restaurant revenue as $5,256,000
Casino Revenues $12,340,000
Direct costs of hotel as $9,819,260
Direct costs of restaurant $3,749,172
Direct costs of casino as 4,248,768
Segment margin of hotel as $ 6,605,740
Segment margin of restaurant as $1,506,828
Segment margin of casino as $ 8,091,232
Floor space of hotel as 80,000 sqft
Floor space of restaurant 16,000 sqft
Floor space of casino as 64,000 sqft
No. of employees in hotel as 200
No. of employees in restaurant as 50
No. of employees in casino as 250
Total fixed overhead costs for 2013 were $14,550,000
2.
The allocation of indirect costs to divisions using three different bases suggested.
3.
The way to decide how to allocate the indirect costs to the division
4.
Whether any of the divisions should be closed on the basis of the analysis

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