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Overhead coesists of all other costs except the cost of attorneys (salary and benefits). Each firm now distributes any profits among its lawyers using formulas based on seniority and revenues generated by the attorney. Post-merger, the sew firm will be known as Spinelli and Gilbert (SG) and will consist of two profit centers: SSH and GL. All attorneys in the two pre-merged firms will remain and will be assigned to the corresponding post-merger profit center. Each profit center will distribute its profits to the Lawyers in that profit center using the same pre-merger distribution formula. Post-merger, the overhead of the two firms will be pooled and allocated back to the two profit centers based on the number of billable bours generated in each profit center. Required: a. Prepare a table that reports the current profits of each firm before the merger and the total profits of the two firms prioe to the merger. b. Prepare a table that reports the profits of each profit center (SSH and GL) after allocating the overhead based on billable hours following the merger assuming that the cost savings and additional revenues are realized. c. Based on the analyses in parts (a) and (b), discuss the likely outcome of the proposed merger talks. For example, will the artorneys in SSH and GL be equally enthused about the merger? Do you expect the merger to occur if put to a vote of all the lawyers in each firm? d. What is the underlying cause for your prediction in part (c)

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