A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:
$\begin{array}{llr}
\text {Department A } &\$308,000\
\text {Department B } &644,000\
\text { Department C } &448,000
\end{array}$
Total sales…………………. $1,400,000
Calculate the amount of advertising expense that should be allocated to each department?

Question

A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:
 $\begin{array}{llr}
  \text {Department A  } &\$308,000\
 \text {Department B } &644,000\
 \text { Department C } &448,000
\end{array}$
 Total sales…………………. $1,400,000
Calculate the amount of advertising expense that should be allocated to each department?

Quizplus · Accepted Answer

The Answer of A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:
 $\begin{array}{llr}
  \text {Department A  } &\$308,000\
 \text {Department B } &644,000\
 \text { Department C } &448,000
\end{array}$
 Total sales…………………. $1,400,000
Calculate the amount of advertising expense that should be allocated to each department?