Bread Cake Doughnuts Total

Segment margin $6,400,000 $1,300,000 $6,150,000 $13,850,000

Allocated headquarter costs
($5,100,000 ÷ 3) 1,700,000 1,700,000 1,700,000 5,100,000
Operating income $4,700,000 $ (400,000) $4,450,000 $ 8,750,000

2.
Bread Cake Doughnuts Total
Segment margin $6,400,000 $1,300,000 $6,150,000 $13,850,000
Allocated headquarter costs,
Human resources1
(50%; 12.5%; 37.5% ×
$1,900,000) 950,000 237,500 712,500 1,900,000
Accounting department2
(53.9%; 11.6%; 34.5% ×
$1,400,000) 754,600 162,400 483,000 1,400,000
Rent and depreciation3
(50%; 20%; 30% ×
$1,200,000) 600,000 240,000 360,000 1,200,000
1 
  $600, 000  200,000 200,000 200,000 600,000
Other  3 
Total 2,504,600 839,900 1,755,500 5,100,000
Operating income $3,895,400 $ 460,100 $4,394,500 $ 8,750,000