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Three segments (X, Y and Z) of Truly Company have net sales of $ 200,000, $ 75,000, and $ 125,000, respectively. A decision is made
Three segments (X, Y and Z) of Truly Company have net sales of $ 200,000, $ 75,000, and $ 125,000, respectively. A decision is made to allocate the pool of $ 30,000 of administrative overhead expenses of the home office to the segments, using net sales as the basis for allocation.
How much of the $30,000 should be allocated to each segment?
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