EXERCISE 6-3 Sales Dollars as an Allocation B Konig Enterprises, Ltd., owns and operates three restaurants in Vancouver, B.C. The company allocates its fixed administrative expenses to the three restaurants on the basis of sales dollars. During 2008, the fixed administrative expenses totaled $2.000,000. These expenses were allo- ase for Fixed Costs [L02] cated as follows: Restaurants Rick's Imperial Ginger Wok Harborside Garden Total Total sales-2008. . $16,000,000 Percentage of total sales. Allocation (based on the above percentages)... $15,000,000 375% $9,000,000 $40,000,000 40% 22.5% 100% $800,000 $750,000 $450,000 $2,000,000 During 2009, the following year, the Imperial Garden restaurant increased its sales by $10 million. The sales levels in the other two restaurants remained unchanged. The company's 2009 sales data were as follows: Restaurants Rick's Harborside Ginger Wok Imperial Garden Total Percentage of total sales.. 100% 50% 18% 32% Paed diministrative expenses remained unchaned at $2.000 Required: ee sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for 2009. your allocation from (I) above to the allocation for 2008. As the manager of the rden restaurant, how would you feel about the amount that has been charged to you for 2009? on the usefulness of sales dollars as an allocation base