Konig Enterprises, Limited, 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. Last year the fixed administrative expenses totaled $860,000 and were allocated as follows: Restaurants Rick's Harborside Total sales-Last Year $ 17,630,000 Imperial Garden $ 13,120,000 Ginger Wok $ 10,250,000 Total $ 41,000,000 Percentage of total sales. 438 328 25% 100% Allocation (based on the above percentages) $ 369,800 $ 215,000 $ 860,000 $ 275,200 This year the Imperial Garden restaurant increased its sales by $1 million. The sales levels in the other two restaurants remained unchanged. The company's sales data for this year were as follows: Restaurants Rick's Harborside Total sales-This Year Percentage of total sales $ 17,630,000 Imperial Garden $ 14,120,000 Ginger Wok $ 10,250,000 Total $ 42,000,000 428 34% 24% 100% Fixed administrative expenses for this year remained unchanged at $860,000. Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. 3. Is sales dollars a good base for allocation of fixed costs? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. (Negative amounts should be indicated by a minus sign.) Rick's Harborside Imperial Ginger Wok Total Garden 1. Fixed administrative expense allocation - current year 2. Change in allocated cost