How much selling and distribution expenses is apportioned to department M?
A.
N800
B.
N600
C.
N400
D.
N1800
Correct answer is A
Department difference M has a turnover of 89,000. That is 29,000 higher than department L and 49,000 higher than department K, This means department M has the highest selling and distribution cost because they sold the most. Hence the 1800 would be divided amongst the three departments in the ratio of their turnover
Department K = 400
L = 600
M = 800
total = 1800