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Consider a company's record of $ sales in territories A and B shown in the table below. Furthermore, the company incurred indirect advertising cost of
Consider a company's record of $ sales in territories A and B shown in the table below. Furthermore, the company incurred indirect advertising cost of $500,000 dollars. If the company decides to allocate the indirect advertising cost across the territories in proportion to $ sales volume then the allocation would be as follows: Territory A $1,200,000 Territory B $800,000 $ sales volume Territory A: $300,000 dollars, Territory B: $200.000 dollars Territory A: $350,000 dollars, Territory B: $150.000 dollars Territory A: $ 200,000 dollars, Territory B: $300,000 dollars None of the mentioned options
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