Animer Inc. provides the following information: Corporate advertising costs = $800,000 Division A $4,500,000 total revenues Division B = $7,500,000 total revenues Division C = $2,000,000 total costs Required: Assume the customers with higher revenues benefitted more form corporate adverting than customers with lower revenues: 1. What is the allocated corporate advertising costs for Division A? 2. What is the allocated corporate advertising costs for Division B?

Animer Inc. provides the following information: Corporate advertising costs = $800,000 Division A $4,500,000 total revenues Division B = $7,500,000 total revenues Division C = $2,000,000 total costs Required: Assume the customers with higher revenues benefitted more form corporate adverting than customers with lower revenues: 1. What is the allocated corporate advertising costs for Division A? 2. What is the allocated corporate advertising costs for Division B?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8DQ: Suppose a firm with a contribution margin ratio of 0.3 increased its advertising expenses by 10,000...

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