A nonprofit organization that conducts research on skin cancer sends a mailing to every person in the nation. The mailing contains the following: a pamphlet that educates people about melanoma, how to examine your skin for warning signs of melanoma, and encourages people to be examined by a dermatologist. Also included is a pledge card and return envelope for a donation to the organization. The cost per items in the mailing is as follows: pamphlet - $3.50, pledge card - $1.25, return envelope - $1.25, the mailing envelope - $0.75, and postage - $0.49.

a. Does the activity meet the criteria for allocating joint costs?

b. How would you allocate the joint costs?

c. List the functional classifications of expenses and place the costs within the appropriate classification.