Joyful Praises Corporation has total advertising expenses of $84,000: $32,000 for radio advertising and $52,000 for print advertising.The print advertising is allocated to Departments A and B based on net sales generated in each department.Department A has net sales of $446,400 and Department B has net sales of $297,600.How much of the print advertising should be allocated to Department A?

Question

Quizplus · Accepted Answer

First, we need to find the percentage of net sales generated by each department.

Department A: 
Net sales = $446,400 
Percentage of total net sales = $446,400 ÷ ($446,400 + $297,600) = 60%

Department B: 
Net sales = $297,600 
Percentage of total net sales = $297,600 ÷ ($446,400 + $297,600) = 40%

Now we can allocate the print advertising expenses based on these percentages:

Department A: 
Print advertising = $52,000 × 60% = $31,200

Department B: 
Print advertising = $52,000 × 40% = $20,800

Therefore, $31,200 of the print advertising should be allocated to Department A.

Joyful Praises Corporation Has Total Advertising Expenses of $84,000: $32,000