Answer:
The amount of advertising allocated to:
Department 1: $1,250
Department 2: $3,750
Department 3: $5,000
Explanation:
Total sales of the company = Sales of Department 1 + Sales of Department 2 + Sales of Department 3 = $10,000 + $30,000 + $40,000 = $80,000
Percent of sales of three selling departments:
Department 1 = ($10,000/$80,000)x100% = 12.5%
Department 2 = ($30,000/$80,000)x100% = 37.5%
Department 3 = ($40,000/$80,000)x100% = 50%
Advertising is allocated based on percent of sales. The amount of advertising allocated to:
Department 1 = 12.5% x $10,000 = $1,250
Department 2 = 37.5% x $10,000 = $3,750
Department 3 = 50% x $10,000 = $5,000
