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Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,640,000.
You have been provided with the following information for the upcoming year:
Connections Time on Network (hours)
Commercial 70,000 103,000
Retail 60,000 120,000
Consumer 110,000 305,000
Question 1: What is the total computer server network cost allocated to the Retail Division?
Multiple Choice
Option 1: $600,000.
Option 2: $412,800.
Option 3: $3,240,000.
Option 4: $670,800.
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