. Consider the proposed dual-rate method for CA&A. Suppose that next years targets are fixed corporate costs of $20,000 and variable costs of $30,000. The European division expected revenues are $75,000, and the total expected CA&A revenues are $600,000. Assuming the total corporate costs of $50,000 ($20,000 fixed and $30,000 variable) are allocated based on expected revenues, the target corporate cost for the European division is _____.

A. $3,125

B. $6,250

C. $9,375

D. $12,500

E. none of the above