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Math Help - Proration Problem 2

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    Proration Problem 2

    HI, I have another question that I can not solve and I hope someone can help me. The problem is the following:

    The Following table shows National Paper Products' capital investment in each of its three divisions, and the most recent year's gross sales for eacg division. The operating cost of the head office for the year were $839,000. These costs are allocated to the divisions before each division's profit is deteremined. How much (rounded to the nearest dollar) should be allocated to each division if the costs are prorated on the basis of:

    A. The captial investment in each division

    B. The sales of each Division

    Table is as follows:

    Division Investments ($) Gross Sales($)

    Industrial Products 25,300,000 21,200,000
    Fine Paper 17,250,000 8,350,000
    Containers and packaging 11,900,000 7,450,000

    Please Help. Thanks in advance
    Last edited by Crys; June 14th 2009 at 10:50 AM.
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