Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the
Question:
Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the retail division should amount to:
a. $0
b. $29
c. $85,260
d. $117,740
e. $203,000
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