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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Management of Wee Ones (WO), an Operator of Day-Care Facilities