Perfect Health Pharmacy allocates indirect expenses to its three departments on the basis of sales. For the year ended 30 June 2016, the following allocations were made:

	Dispensary items		Cosmetics		Hair care			Total
Sales Indirect expenses	$766 200 426 000		$383 100 213 000		$127 700 71 000		$1 277 000 710 000

Assume that, during the year ended 30 June 2017, the dispensary items and cosmetics departments have the same sales they had in the previous year, but hair care sales increase to $171 734 because of the popularity of a new product line. Assume further that the total indirect expenses of $710 000 increase by 15%.

Required

A. Determine the allocation of indirect expenses for the year ended 30 June 2017, using sales.

B. Are the results of requirement A logical for an equitable allocation of indirect expenses? Explain.