Exam 3 instructions I help Question 43 (of so) Save&Exit; Submit Time remaining:

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Exam 3 instructions I help Question 43 (of so) Save&Exit; Submit Time remaining: 1:51:55 43 Todweed Academy allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools: Lower Middle Upper School School School School Total S3,000,000 $1,200,000 Tultion revenue $1,000,000| $800,0001 $1,200,000| Using revenue as an allocation base, the amount of costs allocated to the Lower School is calculated to be: O $240.000. O $320.000 O $400,00o O $480,000. O $600.000 16

Explanation / Answer

Calculation of Amount of Cost allocated to the Lower School Marketing and Administrative Expense          1,200,000 Tuition Revenue of Lower School          1,000,000 Total Tuition Revenue          3,000,000 Amount of Marketting and administraive expense Allocated to Lower School (1,200,000*1,000,000/3,000,000)              400,000 Therefore, the right answer is option ( c ) $ 400,000

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