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Jim Dandy Auto Sales uses all types of media to advertise its products (television, radio, newspaper, Internet and so on). At the end of 2016,

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Jim Dandy Auto Sales uses all types of media to advertise its products (television, radio, newspaper, Internet and so on). At the end of 2016, the company president, Jim McKinnley, decided that all advertising costs would beEE (Click the icon to view the data.) incurred by corporate headquarters and allocated to each of the company's four sales locations based on number of vehices sold. If the managers had done this same advertising on their own their advertising costs would be as follows (Click the icon to view information about the east sales location.) Read the requirements. (Click the icon to view the advertising information.) Requirement 1. Show the amount of the 2017 advertising cost ($1,600,000) that would be allocated to each of the divisions under the following criteria: (a) McKinnley's allocation method based on number of cars sold, (b) the stand-alone method if divisions had done their own advertising. (c) the incremental-allocation method, with divisions ranked on the basis of dollars they would have spent on advertising in 2017. (Do not round intermediary calculations. Round the final answer to the nearest whole dollar. Enter a for amount with a zero values.) Sales Location East West North South Cost Allocated Cost Allocated Cost Allocated Requirement 2. Which method do you think is most equitable to the divisional sales managers? What other options might President Jim McKinnley have for allocating the advertising costs In this situation is probably the best method because Therefore, What other option(s) might President Jim McKinnley have for allocating the advertising costs? A. McKinley could alternately separate the total $1,600,000 of advertising cost into two cost pools one for new car advertising and one for used car advertising and allocate on the basis of new cars sold and used cars sold. OB. McKinnley could allocate the advertising cost equally among the divisions. O C. McKinnley could avoid allocating the advertising costs and absorb the costs through the company headquarters. O D. All of the above are equitable alternatives

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