Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location Kentucky Arizona Illinois Total New product revenue $ 66,000,000 $ 100,000,000 $ 84,000,000 $ 250,000,000 Research & Development $ 60,000,000 Using revenue as an allocation base, the amount of costs allocated to the Arizona research facility is calculated to be: Multiple Choice $18,000,000. $30,000,000. $36,000,000. $34,000,000. $24,000,000.
Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location Kentucky Arizona Illinois Total New product revenue $ 66,000,000 $ 100,000,000 $ 84,000,000 $ 250,000,000 Research & Development $ 60,000,000 Using revenue as an allocation base, the amount of costs allocated to the Arizona research facility is calculated to be: Multiple Choice $18,000,000. $30,000,000. $36,000,000. $34,000,000. $24,000,000.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:
| Facility location | Kentucky | Arizona | Illinois | Total | ||||||||
| New product revenue | $ | 66,000,000 | $ | 100,000,000 | $ | 84,000,000 | $ | 250,000,000 | ||||
| Research & Development | $ | 60,000,000 | ||||||||||
Using revenue as an allocation base, the amount of costs allocated to the Arizona research facility is calculated to be:
Multiple Choice
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$18,000,000.
-
$30,000,000.
-
$36,000,000.
-
$34,000,000.
-
$24,000,000.
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