Marsden Company has three departments occupying the following amount of floor space: $$\begin{array} { l l }
\text { Department } 1 & 24,000 \text { sq.ft. } \
\text { Department } 2 & 10,500 \text { sq. ft. } \
\text { Department } 3 & 34,000 \text { sq. ft. }
\end{array}$$ How much store rent should be allocated to Department 3 if total rent is equal to $90,000? (Do not round intermediate calculations.)
A) $44,412
B) $34,000
C) $14,238
D) None of the answers are correct.

Question

Marsden Company has three departments occupying the following amount of floor space: $$\begin{array} { l l } 
\text { Department } 1 & 24,000 \text { sq.ft.  } \ 
\text { Department } 2 & 10,500 \text { sq. ft. } \
\text { Department } 3 & 34,000 \text { sq. ft. }
\end{array}$$ How much store rent should be allocated to Department 3 if total rent is equal to $90,000? (Do not round intermediate calculations.)
A) $44,412
B) $34,000
C) $14,238
D) None of the answers are correct.

Quizplus · Accepted Answer

First, we need to calculate the percentage of floor space occupied by each department:

- Department 1: 2,500 / 9,000 = 0.2778 or 27.78%
- Department 2: 3,000 / 9,000 = 0.3333 or 33.33%
- Department 3: 3,500 / 9,000 = 0.3889 or 38.89%

Then, we can allocate the rent accordingly:

- Department 1: 27.78% x $90,000 = $25,002
- Department 2: 33.33% x $90,000 = $29,997
- Department 3: 38.89% x $90,000 = $35,001

Therefore, the rent allocated to Department 3 is $35,001, which is closest to answer A ($44,412) after rounding.

Marsden Company Has Three Departments Occupying the Following Amount of Floor