Julia Company allocates its indirect advertising expenses based on each department's gross sales. If the men's apparel department has gross sales of $200,000 out of a total of $1,800,000 in gross sales, what percentage would Julia use to allocate its indirect advertising expenses?

Question

Quizplus · Accepted Answer

The percentage is calculated by dividing the men's apparel department's gross sales by the total gross sales: $200,000 / $1,800,000 = 1/9. However, to express this as a percentage, it is 1/9 * 100% = 11.11%, which is not directly any of the options given. The correct approach is to recognize the mistake in the explanation process: $200,000 / $1,800,000 = 1/9, which is approximately 11.11%, but due to a mistake in interpreting the options, the correct answer is indeed A) 1/9, reflecting the direct proportion of the men's apparel department's sales to the total sales.

Julia Company Allocates Its Indirect Advertising Expenses Based on Each