Alamo's Customer Service Department Follows Up on Customer Complaints by Telephone

question 12

Multiple Choice

Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division) , costs allocated to the retail division should amount to:

• A) $0.
• B) $29.
• C) $85,260.
• D) $117,740.
• E) $203,000.

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