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	$ 66,000,000	$ 80,000,000	$ 104,000,000	$ 250,000,000
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:

$18,200,000.

$36,960,000.

$17,960,000.

$31,960,000.

$24,960,000.