Allocate the cost of the truck among the three departments

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Problem - Mercado Lopez owns a furniture store that offers free delivery of merchandise delivered within the local area. Mileage records for the three sales departments are as follows:

Department 1: 36,000 miles

Department 2: 48,000 miles

Department 3: 16,000 miles

The cost of using the truck for the last year, including depreciation, was $16,000. Allocate the cost of the truck among the three departments on the basis of miles driven.

Reference no: EM132724473

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