A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows:
Dept 1 $110,000
Dept 2 $ 213,750
Dept 3 $151,250
How much advertising expense should be allocated to Department 2 if the allocation is based on the departmental sales?
Choose one answer.
A. $11,000.
B. $14,000.
C. $16,667.
D. $22,500.
E. $50,000.