Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:

Facility location	Kentucky			Arizona			Illinois			Total
New product revenue	$	56,000,000		$	100,000,000		$	84,000,000		$	240,000,000
Research & Development										$	60,000,000

Using revenue as an allocation base, the amount of costs allocated to the Arizona research facility is calculated to be:

• $44,000,000.

• $36,000,000.

• $19,000,000.

• $25,000,000.

• $31,000,000.