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Shah, J., 193 Shah, J. Y., 273 Shalker, T. E., 466 Sham, P. C., 72, 73 Shapira, A., 573 Shapiro, I., 541 Shapiro, T., 124 Sharkey, W. F., 37 Sharp, D., 40 Sharp, D. W., 39 Sharp, G., 586, 589 Shastri, L., 202 Shaver, P., 328, 449, 452 Shaver, P. R., 75 Shavitt, S., 307 Shaw, L. L., 476, 478 Shaw-Barnes, K., 314 Shea, C. L., 476 Sheeran, P., 301 Shejwal, B. R., 424 Shekelle, R. B., 95 Sheline, Y. I., 104 Shell, R., 476 Shelling, T., 404 Shelton, M. L., 476 Shepelak, N. J., 545 Shepherd, R., 302 Sherif, C. W., 486, 487, 488, 490, 492, 499 Sherif, M., 397, 398, 486, 487, 488, 490, 492, 499 Sherman, D. A., 268 Sherman, J. W., 264, 265, 268, 270 Sherman, S. E., 476 Sherrod, D. R., 430 Shiffrin, R. M., 266 Shih, J. C., 106 Shih, M., 486, 521 Shimp, T. A., 362 Shipley, B. E., 579 Shizgal, P., 291 Shklar, J., 553 Shoda, Y., 180 Shore, B., 41 Shotland, R. L., 263 Shrauger, J. S., 335 Shultz, T., 554 Shumaker, S., 434 Shweder, R. A., 31, 35, 36, 37, 38, 41, 42, 43, 44, 46, 47, 49, 66, 285, 288, 560 Sia, T. L., 315 Sibicky, M. E., 475 Sidanius, J., 486, 488, 499, 514, 520, 521, 522 Sidney, S., 528 Siegal, M., 44 Siegel, J., 99 Siegel, P. A., 557, 560 Siegler, R. S., 199 Siever, L., 104 Siever, L. J., 78 Sifneos, P., 130 Sigall, H., 305 Signorelli, N., 580 Sikes, J., 492 Silva, F., 139 Silver, L. B., 570 Silver, M., 342

a. Prepare a consolidated contributory income statement showing each of the three divisions side by side for comparison. Do not allocate indirect costs. b. Allocate the indirect costs to the divisions and prepare a departmental income statement for each division. Administrative, general, and marketing costs are allocated based on sales revenue. The remaining indirect costs are allocated based on square footage used by each division: Dining 2,400 sq. ft. Banquet 3,000, sq. ft. Beverage 600 sq. ft. c. After allocating the indirect costs, would you consider closing any of the divisions Why or why not P2.6 With reference to the information provided for Cindy s Restaurant in Problem 2.5: a. Calculate the contributory income percentage for each of the three divisions. b. If there were a shift of $16,000 in sales revenue from the banquet area to the dining room, would you expect the restaurant s overall operating income to increase or decrease Explain your reasoning to support your answer. c. Assuming that the shift of sales revenue does occur, there is no change in total sales revenue and undistributed (indirect) costs. Other direct costs will remain fixed. Wages and salaries costs must be recalculated. Calculate the new operating income for each department and the restaurant s new total operating income. In calculating such items as cost of sales percentage, gross margin percentage, and wages and salaries, round your percentages to the first decimal place.

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they approximate the ideal but unattainable counterfactual comparison that one would need for completely con dent causal inference The Randomized Experiment Randomized experiments are often referred to as the gold standard against which other methods of assessing treatment effects are compared In a randomized experiment, individuals (or other units) are randomly assigned to treatment conditions Without random assignment, selection differences are likely to arise, which means that the cases in a treatment group and those in a comparison group differ on the average initially For example, the college freshmen who choose on their own to attend a freshman orientation would probably differ on average in several ways from those who choose not to attend Random assignment is bene cial to causal inference largely because it removes systematic bias due to initial selection differences and, thus, creates a fair comparison (Boruch, 1997).