The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division. The company recently invested $8,000,000 to maintain its railroad track. Pertinent data for the two divisions are as follows: $\text { Total Miles Traveled: }$
$\begin{array}{ll}
\text { Western Division } &800,000 \text { miles } \
\text {Pacific Division } & 1,200,000 \text { miles } \
\end{array}$
The amount of track improvement cost that should be allocated to the Western Division is:
A) $4,000,000.
B) $3,200,000.
C) $800,000.
D) $5,333,333.

Question

The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division. The company recently invested $8,000,000 to maintain its railroad track. Pertinent data for the two divisions are as follows: $\text { Total Miles Traveled: }$
$\begin{array}{ll}
  \text {  Western Division } &800,000 \text { miles } \
  \text {Pacific Division  } &  1,200,000 \text { miles } \
\end{array}$
 The amount of track improvement cost that should be allocated to the Western Division is:
A) $4,000,000.
B) $3,200,000.
C) $800,000.
D) $5,333,333.

Quizplus · Accepted Answer

The Western Division has 40% (24 / 60) of the total track miles and the Pacific Division has 60% (36 / 60) of the total track miles. Therefore, the Western Division should be allocated 40% of the $8,000,000 cost, which equals $3,200,000.

The Western and Pacific Railroad Has Two Divisions, the Western Total Miles Traveled: \text { Total Miles Traveled: } Total Miles Traveled:

The Western and Pacific Railroad Has Two Divisions, the Western $\text { Total Miles Traveled: }$