Find cost allocated to the wholesale operation should amount

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Problem 1: Pound Industries' customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,300 calls and incurred costs of $278,100. If 3,020 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the wholesale operation should amount to:

Option 1: $27.

Option 2: $0.

Option 3: $81,540.

Option 4: $196,560.

Option 5: $278,100.

Reference no: EM132750914

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