Pound Industries customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 16,000 calls and incurred costs of $400,000. If 3,430 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the wholesale operation should amount to:

Multiple Choice

• $0.

• $25.

• $85,750.

• $314,250.

• $400,000.