A retail store has three departments, S, T, and U, 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 T based on departmental sales.
A) $11,000.
B) $14,000.
C) $16,667.
D) $22,500.
E) $50,000.
Correct Answer:
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