A retail store has three departments, 1, 2, and 3, and doesgeneral advertising t

Question

A retail store has three departments, 1, 2, and 3, and doesgeneral advertising that benefits all departments. Advertisingexpense totaled $50,000 for the year, and departmental sales wereas follows:
Dept 1    $110,000

Dept 2    $ 213,750

Dept 3     $151,250
  

How much advertising expense should be allocated to Department 2 ifthe allocation is based on departmental sales?

Choose one answer.

A. $11,000.

B. $14,000.

C. $16,667.

D. $22,500.

E. $50,000.

A. $11,000.

B. $14,000.

C. $16,667.

D. $22,500.

E. $50,000.

Explanation / Answer

Choose one answer.

A. $11,000.

B. $14,000.

C. $16,667.

D. $22,500.

E. $50,000.

A. $11,000.

B. $14,000.

C. $16,667.

D. $22,500.

E. $50,000.

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