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Question
A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department 2 based on departmental sales.
Department 1.. $110,000
Department 2.. 213,750
Department 3.. 151,250
A. $11,000.
B. $14,000.
C. $16,667.
D. $22,500.
E. $50,000.
Answer
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