Management of Wee Ones (WO) , 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: WO'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) $17,820.
B) $19,800.
C) $30,000.
D) $40,543.
E) None of the answers is correct.
Correct Answer:
Verified
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