Answer the Following Questions Using the Information Below:
Stark Corporation

question 17

Multiple Choice

Answer the following questions using the information below:
Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.
$\begin{array}{lrr}&\text { Car Rental }&\text { Truck Rental }\\\text { Number of Vehicles in fleet } & 850 & 430 \\\text { Number of employees } & 125 & 75 \\\text { Sales } & \$ 750,000 & \$ 375,000\end{array}$
-If administrative expense of $77,500 is allocated on the basis of number of employees,the amount allocated to the Car Rental Department would be ________.

• A) $47,387.50
• B) $48,437.50
• C) $46,877.50
• D) $49,247.50

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Definitions:

Buy a Unit

The action of purchasing a single item or measure of a product for a specified price.

Perceived Market Share

An estimate of the fraction of total market sales captured by a firm, based on the perception of consumers or the firm itself.

Actual Market Share

The real or actual percentage of a market controlled by a company or product, measured by sales volume or revenue.

Demand Curve

This reflects how the quantity demanded of a good or service varies with changes in its price, typically sloping downward from left to right.