Pound Industries' Customer Service Department Follows Up on Customer Complaints

Multiple Choice

Pound Industries' customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 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:

A) $0.
B) $29.
C) $85,260.
D) $117,740.
E) $203,000.