COST MANAGEMENT DB

Cost Management DB

Cost Management DB

Cost of advertising and warehouse expense allocated to each of the businesses based on the traditional method

Cost of advertising and warehouse expense allocated to each of the businesses based on the traditional method, if the Cost were split simply 50-50 than allocated expense would be :

Advertising Expenses - 5 /2 = $ 2.5 M for each business warehouse expenses - 3/2 = $ 1.5 M for each business

Recommendation for allocating these expenses to each of the businesses

As the target market is totally different, the unicycles market is very specific/ niche & small while the ...