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Three segments (A, B, and C) of Trump Enterprises have net sales of $500,000, $300,000, and $200,000, respectively. A decision is made to allocate the

Three segments (A, B, and C) of Trump Enterprises have net sales of $500,000, $300,000, and $200,000, respectively. A decision is made to allocate the pool of $50,000 of administrative overhead expenses of the home office to the segments, using net sales as the basis for allocation.

a. How much of the $50,000 should be allocated to each segment?

b. If Segment C is eliminated, how much of the $50,000 will be allocated to A and B?

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