Red Company 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	$ 30,000,000	$ 80,000,000	$ 50,000,000	$ 160,000,000
Research & Development				$ 60,000,000

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

Multiple Choice

$9,200,000.

$30,750,000.

$11,750,000.

$25,750,000.

$18,750,000.