Baxter customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 16,300 calls and incurred costs of $454,770. Of these calls, 3,990 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the retail division are:

Cost allocated= $343,449

Explanation:

Giving the following information:

During a recent period, the department initiated 16,300 calls and incurred costs of $454,770. Of these calls, 3,990 were for the company's wholesale operation; the remainder was for the retail division.

First, we  need to calculate the cost per call:

Cost per call= 454,770/16,300= $27.9

Now, we can allocate to the retail division:

Number of calls= 16,300 - 3,990= 12,310

Cost allocated= 12,310*27.9= $343,449

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