Homework Answers
Investment in Northern division = $15.8 m
Eastern division = $9.4 m
Western division = $12.6 m
Total investment = (15.8+9.4+ 12.6) = 37.8m
Salary allocated to Northern division = Total salary* Investment in Northern division/ Total investment
= 642600*15.8/37.8
=268600
Salary allocated to Eastern division = Total salary* Investment in Eastern division/ Total investment
= 642600*9.4/37.8
=159800
Salary allocated to Western division = Total salary* Investment in Western division/ Total investment
= 642600*12.6/37.8
=214200
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