Marsden Company has three departments occupying the following amount of floor space: $$\begin{array} { l l }
\text { Departiment } 1 & 15,000 \text { sq. ft. } \
\text { Department } 2 & 10,000 \text { sq. ft. } \
\text { Department } 3 &25,000 \text { sq. ft. }
\end{array}$$
How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)
A) $100,000
B) $50,000
C) $66,667
D) None of the answers are correct.

Question

Marsden Company has three departments occupying the following amount of floor space: $$\begin{array} { l l } 
\text { Departiment } 1 & 15,000 \text { sq. ft. } \
\text { Department } 2 & 10,000 \text { sq. ft. } \
\text { Department } 3 &25,000 \text { sq. ft. }
\end{array}$$
 How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)
A) $100,000
B) $50,000
C) $66,667
D) None of the answers are correct.

Quizplus · Accepted Answer

Department 3 occupies 25,000 sq. ft. out of a total of 50,000 sq. ft. (15,000 + 10,000 + 25,000). Therefore, it should be allocated 50% of the total rent, which is $200,000 * 0.5 = $100,000.

Marsden Company Has Three Departments Occupying the Following Amount of Floor