Marshall Aqua Technologies has four separate projects it can pursue over the next several years. The

divisions. She is considering whether to base her allocations on the (1) expected increase in…

                   divisions. She is considering whether to base her allocations on the (1) expected increase in divisional revenue from the promotions or (2) expected increase in divisional profi t from the promotions (before allocated promotion costs). General promotions had the following eff ects on the two divisions: Rentals Sales Increase in divisional revenue $350,000 $700,000 Increase in profi t (before allocated promotion costs) 56,000 24,000 a. Allocate the total promotion cost to the two

View complete question »                   divisions. She is considering whether to base her allocations on the (1) expected increase in divisional revenue from the promotions or (2) expected increase in divisional profi t from the promotions (before allocated promotion costs). General promotions had the following eff ects on the two divisions: Rentals Sales Increase in divisional revenue $350,000 $700,000 Increase in profi t (before allocated promotion costs) 56,000 24,000 a. Allocate the total promotion cost to the two divisions using change in revenue. b. Allocate the total promotion cost to the two divisions using change in profi t before joint cost allocation. c.

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