Answer:
D1= 0.25* 140,000= 35,000
D2= 0.47*140,000= 65,800
D3= 0.28*140,000= 39,200
Explanation:
Giving the following information:
Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments.
Advertising costs are $140,000 this year.
Departmental sales for this year follow:
Department Sales 1 $ 155,000
Department Sales 2 $291,400
Department Sales 3 $173,600
First, we need to find the weighted average participation in sales:
Total sales= 155,000 + 291,400 + 173,600= 620,000
Department 1= 155,000/620,000= 0.25
Department 2= 291,400/620,000= 0.47
Department 3= 173,600/620,000= 0.28
Now, we can allocate the advertising costs for each department:
D1= 0.25* 140,000= 35,000
D2= 0.47*140,000= 65,800
D3= 0.28*140,000= 39,200
