Aday Hotels operates a hotel in San Francisco with two departments. Below is the sales and gross
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Question:
Aday Hotels operates a hotel in San Francisco with two departments. Below is the sales and gross profit data for the departments:
| DEPARTMENT A | DEPARTMENT B | TOTAL | |
| SALES | $559,500 | $440,500 | $1,000,000 |
| GROSS PROFIT | $100,500 | $101,000 | $201,500 |
Indirect costs incurred by Aday Hotels are as follows:
| Indirect Expenses | |
| Property Taxes | $24,000 |
| Marketing | $50,000 |
Here is a breakdown of the Square Footage of each department:
| Department | SQ FT |
| A | 60,000 |
| B | 40,000 |
Management has decided to distribute the Property Taxes based on SQ FT % and the Marketing expenses will be distributed based on the sales mix. Solve the following:
Marketing Expense for Department A
Select one:
a. $28,000
b. $22,000
c. $14,400
d. $9,600
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