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Buslines Incorporated has two divisions, the Eastern Division and the Southern Division. The company recently invested $10,000,000 to maintain its railroad track. Buslines Inc. allocates
Buslines Incorporated has two divisions, the Eastern Division and the Southern Division. The company recently invested $10,000,000 to maintain its railroad track. Buslines Inc. allocates this cost based on miles traveled. Data for the two divisions is as follows: Total Miles Traveled: Eastern Division Southern Division 1,250,000 miles 750,000 miles The amount of track improvement cost that should be allocated to the Eastern Division is: (Do not round your intermediate calculations.) $3,750,000 $7,500,000 $2,500,000 $5,000,000 $6,250,000
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