Reference no: EM132735336
MediaForum has three operating groups: Games, News, and Documentaries.
In May, the company incurred $43,200,000 of joint cost for facilities and administration. May revenues and separate costs of each group are as follows:
Games News Documentaries
Revenue $61,272,000 $55,296,000 $340,776,000
Separate costs 55,872,000 29,376,000 199,296,000
Problem a. What amount of joint cost is allocated to each operating group if the allocation is based on revenue? Note: Compute the profit for each operating group after the allocation.
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