A Retail Store Has Three Departments, 1, 2, and 3

question 46

Multiple Choice

A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department 2 based on departmental sales.

• A) $11,000.
• B) $14,000.
• C) $16,667.
• D) $22,500.
• E) $50,000.

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