Management of Children Are Precious (CAP), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: CAP's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $60,000.
If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:
A) $19,800.
B) $21,000.
C) $30,000.
D) $40,543.
E) None of the other answers are correct.

Question

Management of Children Are Precious (CAP), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:  CAP's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $60,000.
If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:
A) $19,800. 
B) $21,000. 
C) $30,000. 
D) $40,543. 
E) None of the other answers are correct.

Quizplus · Accepted Answer

The Answer of Management of Children Are Precious (CAP), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:  CAP's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $60,000.
If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:
A) $19,800. 
B) $21,000. 
C) $30,000. 
D) $40,543. 
E) None of the other answers are correct.

Management of Children Are Precious (CAP), an Operator of Day-Care