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Andreas93 [3]
3 years ago
5

Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising co

sts are $100,000 this year, and departmental sales for this year follow. Department Sales Department 1 $ 220,000 Department 2 400,000 Department 3 180,000 How much advertising cost is allocated to each department if the allocation is based on departmental sales?
Business
1 answer:
Masteriza [31]3 years ago
5 0

Answer:

Department 1 - $27,500

Department 2 - $50,000

Department 3 - $22,500

Explanation:

The cost to be allocated to each department is proportional to the sales generated by each department. In other words, as the sales increases so does the cost in a direct proportion manner.

Total sales = $220,000 + $400,000 + $180,000

= $800,000

Advertising cost allocated to

Department 1

= (220,000/800,000) * $100,000

= $27,500

Department 2

= (400,000/800,000) * $100,000

= $50,000

Department 3

= (180,000/800,000) * $100,000

= $22,500

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The correct statement is that the Native Americans used to exchange furs for manufactured goods. Such practice of goods in exchange for goods is known as barter system. So, the correct option is C.

Barter system is one of the oldest form of trade and exchange system that has been in existence even before the invention of currency for the purpose of exchange.

<h3>Barter System</h3>

  • The barter system refers to as a system under which goods and commodities are traded for the exchange of excess goods and commodities.

  • The barter system has its own discrepancies and faults as there was no specific medium of exchange and this necessity led to the invention of currency notes and coins.

  • The Native Americans were mostly Indians and carried hunting of animals and hence the furs obtained from animals was in excess with them and as a result, it was exchanged for finished goods.

Hence, the correct option is C that the Native Americans used furs for the exchange of manufactured goods during the days of barter exchange system.

Learn more about barter system here:

brainly.com/question/1888121

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