Don Dandy Auto Sales uses different media to advertise its products (television, radio, newspaper, Internet, and so on). At the end of 2019, the company president, Don Dickens, decided that corporate headquarters would negotiate and pay for all advertising costs and allocate these costs to each of the company's four sales locations based on number of vehicles sold. (Click the icon to view the advertising information.) If managers had done the same advertising on their own, their advertising costs and the actual number of cars sold would be as follows: 2 (Click the icon to view the data.) (Click the icon to view information about the east sales location.) Read the requirements. ..... Requirement 1. Show the amount of the 2020 advertising cost ($1,400,000) that would be allocated to each of the divisions under the following criteria: (a) Dickens' allocation method based on actual number of cars sold, (b) the stand-alone method based on the amounts divisions would have spent on their own advertising, (c) the incremental-allocation method, with divisions ranked on the basis of dollars they would have spent on advertising in 2020. (Do not round intermediary calculations. Round the final answer to the nearest whole dollar. Enter a "0" for amount with a zero values.) (a.) Sales Location Cost Allocated East West North South Question Viewer - More Info The managers had already drawn up their advertising plans for 2020 so the corporate plan would do the same advertising for them as they had planned. Dickens budgeted $1.4 million of total advertising cost for 2020, which was also the actual advertising costs in 2020. Print Done - Data Table Sales Location East West North South Actual Number of Advertising Costs in 2020 if Divisions Cars Sold in 2020 Had Bought the Advertising 3,850 $ 361,250 880 488,750 2,200 616,250 4,070 658,750 11,000 2,125,000 Total Print Done - More Info The manager of the East sales location, Tim Strite, was not happy. He complained that the new allocation method was unfair and increased his advertising costs significantly. The East location sold high volumes of low-priced used cars and most of the corporate advertising budget related to new car sales. Print Done Requirements 1. Show the amount of the 2020 advertising cost ($1,400,000) that would be allocated to each of the divisions under the following criteria: a. Dickens' allocation method based on actual number of cars sold b. The stand-alone method based on the amounts divisions would have spent on their own advertising C. The incremental-allocation method, with divisions ranked on the basis of dollars they would have spent on advertising in 2020 2. Which method do you think is most equitable to the divisional sales managers? What other options might President Don Dickens have for allocating the advertising costs? Print Done