Baxter Customer Service Department Follows Up on Customer Complaints by Telephone

Multiple Choice

Baxter customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,000 calls and incurred costs of $312,000. Of these calls, 3,800 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the retail division are:

A) $0.
B) $31,200.
C) $118,560.
D) $193,440.
E) $203,000.