Flamingos, Inc The Total Amount of the Administrative Department's Cost That Would

question 100

Multiple Choice

Flamingos, Inc. has four departments. The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space. Data for these departments follows: $$\begin{array} { | l | r | r | r | r | } \hline &\underline{ \text { Admin.} } & \underline{\text { Maintenance } }& \underline{\text { Assembly } }&\underline{ \text { Packaging } }\\\hline \text { Operating costs } & & & \$ 70,000 & \$ 45,000 \\\text { No. of employees } & & \$ 15,000 & 6 & 4 \\\text { Sq. ft. of space } & \$ 30,000 & 2 & 2,000 & 3,000 \\\hline\end{array}$$ The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:

• A) $4,800.
• B) $12,000.
• C) $10,000.
• D) $18,000.
• E) $13,000.

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Definitions:

Beer

An alcoholic beverage made from the fermentation of cereal grains, primarily barley, with water, hops, and yeast.

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The total money amount anticipated, required, or offered in exchange for an item.

Budget Constraint

An economic model that represents all the combinations of goods and services that a consumer can afford, given current prices within his or her income level.

Opportunity Set

In finance and economics, the range of choices available to investors and consumers, including different combinations of goods, services, or assets that can be chosen for investment or consumption.