Dartmouth Building Products Inc. Provides the Following Information

question 133

Multiple Choice

Dartmouth Building Products Inc. provides the following information.
Corporate advertising costs = $850,000
Division A - $5,000,000
Division B - $20,000,000
Number of ads run relevant on Division A products 500
Number of ads run relevant to Division B products 3667
Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division A?

• A) $748,000
• B) $212,500
• C) $170,000
• D) $850,000

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Definitions:

Union of Events

The set of outcomes that belong to either one event or another in probability, including those that belong to both events.

Sample Space

The set of all possible outcomes in a statistical experiment.

Conditional Probability

The probability of an event occurring, given that another event has already occurred.

Mutually Exclusive Events

Two or more events that cannot occur at the same time in any given experiment or scenario, implying no overlap in their outcomes.