Profit Center Responsibility Reporting On-Demand Sports Co. operates two divisions-the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30, 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded Sales-Action Sports (AS) Division Sales-Team Sports (TS) Division Cost of Goods Sold-Action Sports (AS) Division Cost of Goods Sold-Team Sports (TS) Division Sales Expense- Action Sports (AS) Division Sales Expense-Team Sports (TS) Division Administrative Expense-Action Sports (AS) Division Administrative Expense-Team Sports (TS) Division Advertising Expense Transportation Expense Accounts Receivable Collection Expense Warehouse Expense $18,500,000 30,600,000 10,700,000 19,200,000 1,500,000 2,100,000 1,250,000 1,450,000 3,000,000 654,900 400,500 800,000 The bases to be used in allocating expenses, together with other essential information, are as follows: a. Advertising expense-incurred at headquarters, charged back to divisions on the basis of usage: Action Sports Division, $1,200,000; Team Sports Division, $1,800,000 b. Transportation expense-charged back to divisions at a charge rate of $18.50 per bll of lading: Action Sports Division, 14,000 bills of lading; Team Sports Division, 21,400 bills of lading c. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a charge rate of $9.00 per invoice: Action Sports Division, 32,000 sales invoices; Team Sports Division, 12,500 sales invoices. d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Action Sports Division, 120,000 square feet; Team Sports Division, 80,000 square feet