John's Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers The company is organized into two divisions Personal and Business. Once a computer is built, t is shipped to the customer. Biling for all customers is handled by the corporate Accounts Receivable Department Accounts Receivable performs two major activities: biling and dispute resolution. Biling refers to preparing and sending the bils as well as processing the payments. Dispute resolution occurs when a oustomer refuses to pay, usualily due to an error in biling The costs?the Accounts Receivable Department are alocated to the two d sions based onthe number of blls prepa ed. Kyle, the manager of the usness d son, has com snedtat i e alloca ed costs from Accounts Receivable are beginning to make the business division look unprof table and has asked you to recommend some changes to the alocation system. If he agrees with your recommendation, he will pass them on to the chief financial officer Data on costs and activities in the Accounts Receivable Department follow Number of bils prepared Number of dsputes 70 The Accounts Receivable department incurred the folowing costs during the year Dispute resolution Total $ 42,750 31.500 3 74 250