Organic Laboratories Allocates Research and Development Costs to Its Three

question 110

Multiple Choice

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: $\begin{array}{ll}\text { Facility location }&\text { Kentucky }&\text { Arizona }&\text { Illinois }&\text { Total }\\\text { New product }\\\text { revenue }&\$56,000,000&\$100,000,000&\$84,000,000&\$240,000,000\\\text { Research \& }\\(\text { Development }&&&&\$60,000,000\\\end{array}$
Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

• A) $24,000,000.
• B) $18,000,000.
• C) $9,000,000.
• D) $14,000,000.
• E) $26,000,000.

Understand and calculate equivalent single rates of discounts from a series.

Understand and calculate the outstanding balance after partial payments.

Calculate the amount of discount applied to transactions.

Determine the cash discount expiry date based on payment terms.

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