To advertise or not to advertise Suppose that Creamland and Dairy King are the only two firms that sell ice cream. The following
1 answer:
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Answer:
$350,000
Explanation:
Production = $200,000 number of copies
Accounting = $500,000 number of invoices processed
Personnel Department = $400,000 number of employees
These are all service cost
Total number of copies = 20,000 + 30,000 + 50,000 = 100,000
Total number of invoices processed = 700 + 800 + 500 = 2,000
Total number of employees = 130 + 145 + 125 = 400
Rate per service shall be as follows:
Production = $200,000/100,000 = $2 per copy
Cost of Super Division = $2 50,000 = $100,000
Accounting = $500,000/2,000 = $250 per invoice
Cost of Super Division = $250 500 = $125,000
Personnel Department = $400,000/400 = $1,000 per employee
Cost of Personnel Department = $1,000 125 = $125,000
Total service cost of Super Department = $100,000 + $125,000 + $125,000
= $350,000