Question: For this team problem, your task is to help a large movie theater set up an expense allocation system. Each member of your team will
For this team problem, your task is to help a large movie theater set up an expense allocation system. Each member of your team will describe an allocation system for one of these four expense categories: (1) heating/air conditioning; (2) rent; (3) insurance; or (4) employees wages. Complete instructions are below
Use your Group's Announcements area to discuss and agree on who on your team will analyze which cost category: heat/AC, rent, insurance, or employees wages.
In your Group's Discussion forum, individually propose an expense allocation system for your chosen expense category (heat/AC, rent, insurance, or wages), and propose how this expense category should be allocated across (a) the various-sized auditoriums, (b) the concessions operations, and (c) the restrooms. It is up to you to determine the appropriate allocation base for each profit or cost center. For full credit, your proposal should be clear and detailed.
The theater has:
- 16 auditoriums (ten of the auditoriums have 150 seats each; the other six auditoriums each have 400 seats)
- A large concessions area
- Two large restrooms
Propose an expense allocation system for one of the following categories of expenses:
- Wages paid to hourly employees (assume that all employees are floaters who share in all theater duties: selling and taking tickets; selling concessions; cleaning auditoriums and restrooms)
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