A company rents a building with a total of 50,000 square feet,which are evenly divided between two floors.The company allocates the rent for space on the first floor at twice the rate of space on the second floor.The total monthly rent for the building is $30,000.How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?
A)$6,000.
B)$5,000.
C)$3,000.
D)$4,000.
E)$2,000.

Question

Quizplus · Accepted Answer

Since the total rent for the building is $30,000, each floor contributes $15,000 towards the total rent.

Let x be the rent per square foot on the second floor.

The rent per square foot on the first floor is twice that of the second floor, so it is 2x.

Let y be the number of square feet on the first floor rented by the department.

Then the number of square feet on the second floor is 50,000 - y.

The total rent paid by the department is given by:

2x(y) + x(50,000 - y) = $15,000

Simplifying this equation gives:

y = 10,000

x = $0.50

2x(y) = $10,000

Therefore, the monthly rental expense allocated to the department that occupies 10,000 square feet on the first floor is $4,000.

A Company Rents a Building with a Total of 50,000