The Western and Pacific Railroad has two divisions,the Western Division and the Pacific Division.The company recently invested $8,000,000 to maintain its railroad track.Pertinent data for the two divisions are as follows: Total Miles Traveled:
$$\begin{array} { l r }
\text { Western Division } & 800,000 \text { miles } \
\text { Pacific Division } & 1,200,000 \text { miles }
\end{array}$$
The amount of track improvement cost that should be allocated to the Western Division is: (Do not round your intermediate calculations.)
A) $4,000,000.
B) $3,200,000.
C) $800,000.
D) $5,333,333.

Question

The Western and Pacific Railroad has two divisions,the Western Division and the Pacific Division.The company recently invested $8,000,000 to maintain its railroad track.Pertinent data for the two divisions are as follows: Total Miles Traveled:
$$\begin{array} { l r } 
\text { Western Division } & 800,000 \text { miles } \
\text { Pacific Division } & 1,200,000 \text { miles }
\end{array}$$ 
 The amount of track improvement cost that should be allocated to the Western Division is: (Do not round your intermediate calculations.)
A) $4,000,000.
B) $3,200,000.
C) $800,000.
D) $5,333,333.

Quizplus · Accepted Answer

The total miles traveled by both divisions is 800,000 + 1,200,000 = 2,000,000 miles. The Western Division traveled 800,000 of those miles. To find the portion of the $8,000,000 investment that should be allocated to the Western Division, calculate $800,000 / 2,000,000 = 0.4$ or 40% of $8,000,000, which is $3,200,000.