Pound Industries' 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 wholesale operation are:
A. $118,560.
B. $31,200.
C. $0.
D. $203,000.
E. $193,440.
Answer: A
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