Answer the Following Questions Using the Information Below:
Trustme Vehicle

question 29

Multiple Choice

Answer the following questions using the information below:
Trustme Vehicle Rental Corporation has two departments,Car Rental and Truck Rental.Central costs may be allocated to the two departments in various ways.
$$\begin{array} { l r r } & \text { Car Rental } & \text { Truck Rental } \\\text { Number of vehicles in fleet } & 700 & 300 \\\text { Number of employees } & 150 & 50 \\\text { Sales } & \$ 1500000 & \$ 750000\end{array}$$
-If the administrative expense of $125 000 is allocated on the basis of number of employees,the amount allocated to the Truck Rental Department would be:

• A)$93 750
• B)$75 000
• C)$125 000
• D)$31 250

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Definitions:

Bid Rotation

A form of collusion in auction markets where participants take turns being the lowest bidder to ensure each wins a proportion of contracts over time.

Cartels

Organizations or associations of producers or suppliers formed to maintain prices at a high level and restrict competition.

Auctions

Competitive bidding processes where goods or services are sold to the highest bidder.

Winner's Curse

The tendency of auction winners to have paid more than the item's actual value, often due to competitive bidding and overestimation of worth.