Which method do you think is most equitable to the divisional sales$$ managers? What other options might President

DanDan

DavenportDavenport

have for allocating the advertising$$ costs?

In this$$ situation,

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is probably the best method because

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$$ Therefore,$$

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each entity gets a proportion of advertising costs relative to car sales

each entity gets the same relative proportion of advertising costs as their actual spending

the entities with the highest spending will be allocated those costs

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