Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need to solve for C. The incremental-allocation method, with divisions ranked on the basis of dollars they would have spent on advertising in 2017 If
Need to solve for C. The incremental-allocation method, with divisions ranked on the basis of dollars they would have spent on advertising in
2017
If the managers had done this same advertising on their own their advertising costs would be as follows: (Click the icon to view the data.) Doug 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, Doug Douglas, decided that all advertising costs would be incurred by corporate headquarters and allocated to each of the company's four sales locations based on number of vehicles sold. (Click the icon to view the advertising information.) i (Click the icon to view information about the east sales location.) Read the requirements. Requirement 1. Show the amount of the 2017 advertising cost ($1,400,000) that would be allocated to each of the divisions under the following criteria: (a) Douglas' 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 "0" for amount with a zero values.) (a.) (b.) (c.) x Data Table Sales Location Cost Allocated Cost Allocated Cost Allocated East $ 196,000 West 476,000 $ 182,000 336,000 364,000 North 406,000 Sales Location South 406,000 434,000 East $ 1,400,000 $ 1,400,000 West Actual Number of Advertising Costs in 2017 if Divisions Cars Sold in 2017 Had Bought the Advertising 2,720 $ 306,600 1,040 569,400 1,920 635,100 2,320 678,900 8,000 $ 2,190,000 North South Total Print Done Enter any number in the edit fields and then click CheckStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started