Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 16,000 calls and incurred costs of $400,000. If 3,430 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the retail division under activity-based costing system should amount to:

$314,250.

$0.

$85,750.

$400,000.

$25.