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:
Department A……………… $308,000
Department B……………… 644,000
Department C……………… 448,000
Total sales………………….$1,400,000
Calculate the amount of advertising expense that should be allocated to each department?

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Amrit Grewal · Accepted Answer

Final Answer : Percentage of total sales:Department A $308,000/$1,400,000 = 22%Department B $644,000/$1,400,000 = 46%Department C $448,000/$1,400,000 = 32%

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