Pound Industries' Customer Service Department Follows Up on Customer Complaints

question 53

Multiple Choice

Pound Industries' customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division) , costs allocated to the wholesale operation should amount to:

• A) $0.
• B) $29.
• C) $85,260.
• D) $117,740.
• E) $203,000.

Understand how to calculate operating cash flow.

Understand the concept of Capital Cost Allowance (CCA) and its application to asset depreciation.

Calculate cash flow to creditors and stockholders.

Use financial data to calculate tax paid based on income sources and provincial tax rates.