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problem 1: Organic Laboratories 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 $20,000,000 $40,000,000 $40,000,000 $100,000,000
Research & Development $40,000,000
Question 1: Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be:
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