A Retail Store Has Three Departments, A, B, and C $\begin{array}{llr} \text {Department A } &\$308,000\\ \text {Department B } &644,000\\ \text { Department C } &448,000\end{array}$

question 40

Essay

A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:
$\begin{array}{llr} \text {Department A } &\$308,000\\ \text {Department B } &644,000\\ \text { Department C } &448,000\end{array}$
Total sales…………………. $1,400,000
Calculate the amount of advertising expense that should be allocated to each department?

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Definitions:

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, reinvested in the business or available for debt repayment.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Dividend Rate

The amount of dividend paid per share divided by the price per share, often expressed as a percentage, indicating the returns shareholders receive for each dollar invested in the company's stock.

Date of Record

The cutoff date set by a company to determine which shareholders are eligible to receive a dividend or participate in a corporate action.