Department A had total sales of $84,000 and Department B had total sales of $36,000.Other Office Expenses,totaling $2,500,are allocated on the basis of total sales.The amount allocated to Department B is

Question

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The allocation to Department B is calculated by finding the proportion of Department B's sales to the total sales and then applying that proportion to the total expenses. Department B's sales are $36,000 out of a total of $120,000 ($84,000 + $36,000), which is 30%. Therefore, 30% of $2,500 is $750.

Department a Had Total Sales of $84,000 and Department B