Roberts Appliances has a refrigerator division and a microwave division. Of a $19,800,000 bond issuance, the refrigerator division used $12,400,000 and the microwave division used $7,400,000 for expansion. Interest costs on the bond totaled $1,650,000 for the year. Which corporate costs should be allocated to divisions?

Roberts Appliances has a refrigerator division and a microwave division. Of a $19,800,000 bond issuance, the refrigerator division used $12,400,000 and the microwave division used $7,400,000 for expansion. Interest costs on the bond totaled $1,650,000 for the year. Which corporate costs should be allocated to divisions?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 6P

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Which corporate costs should be allocated to divisions?
Which corporate costs should be allocated to division
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106. Subject :- Finance