Dartmouth Building Products Inc. provides the following information. Corporate advertising costs = $860,000 Division A − $4,900,000 Division B − $19,600,000 Number of ads run on Division A products 600 Number of ads run on Division B products 4,400 Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division B?
Dartmouth Building Products Inc. provides the following information. Corporate advertising costs = $860,000 Division A − $4,900,000 Division B − $19,600,000 Number of ads run on Division A products 600 Number of ads run on Division B products 4,400 Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division B?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dartmouth Building Products Inc. provides the following information.
Corporate advertising costs = $860,000
Division A
−
$4,900,000Division B
−
$19,600,000Number of ads run on Division A products 600
Number of ads run on Division B products 4,400
Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division B?
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