Question: Tiny Tots Transit has 3 operating divisions - Cam, Nate and Ash. Corporate headquarters in Tuscaloosa incurs $3,500,000 per period which the company considers as

Tiny Tots Transit has 3 operating divisions - Cam, Nate and Ash. Corporate headquarters in Tuscaloosa incurs $3,500,000 per period which the company considers as an indirect cost of the operating divisions. You, the Controller of Tiny Tots, have been asked to prepare a report that allocates the corporate headquarters using several different basis. Using the following information, calculate the operating margin of each division after allocating corporate headquarters costs on a Revenue, Direct Cost and number of employees basis. Please show all calculations. CAM NATE ASH Revenues Direct Costs Segment margin Number of employees 10,400,000 6,800,000 3,600,000 2500 8,400,000 5,760,000 2,640,000 1500 5,450,000 4,954,000 496,000 1000
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