Melloitte is a multinational company that provides two main professional services: Audit and Consulting. Meollitte received a request from Elanat (an advertisement company) in Qatar to help the company allocate the costs between its main two segments: Consumer & Commercial. Assuming your group works for Meloitte, discuss what could be done to solve the cost allocation issue. Elanat shared some financial information from the companys income statement of June 2022 with your group:

Sales (Consumer)	$960,000
Sales (Commercial)	740,000
Variable Costs (Consumer)	620,000
Variable Costs (Commercial)	520,000
Traceable fixed Costs (Consumer)	125,000
Traceable fixed Costs (Commercial)	135,000

The common fixed costs are distributed as follows:

Common Fixed Costs (Consumer)	$80,000
Common Fixed Costs (Commercial)	100,000

1. The problem of the current cost allocation implemented by the company.
2. The contribution margin of Consumer & Commercial.
3. The segment margin of Consumer & Commercial.
4. The net operating income of the company.
5. Based on your results, what may be the area(s) that you should bring to Elanats attention?

NOTE: The first and fifth requirements are included for the Word report.