Marsden Company has three departments occupying the following amount of floor space: $$\begin{array} { l l }
\text { Departiment } 1 & 21,000 \text { sq. ft. } \
\text { Department } 2 & 11,500 \text { sq. ft. } \
\text { Department } 3 & 31,000 \text { sq. ft. }
\end{array}$$ How much store rent should be allocated to Department 3 if total rent is equal to $106,000? (Do not round intermediate calculations.)
A) $51,748
B) $31,000
C) $19,197
D) None of the answers are correct.

Question

Marsden Company has three departments occupying the following amount of floor space: $$\begin{array} { l l } 
\text { Departiment } 1 & 21,000 \text { sq. ft. } \
\text { Department } 2 & 11,500 \text { sq. ft. } \
\text { Department } 3 & 31,000 \text { sq. ft. }
\end{array}$$ How much store rent should be allocated to Department 3 if total rent is equal to $106,000? (Do not round intermediate calculations.)
A) $51,748
B) $31,000
C) $19,197
D) None of the answers are correct.

Quizplus · Accepted Answer

First, we need to calculate the total floor space of all three departments:

Total floor space = 5500 + 7000 + 8500 = 21,000 sq. ft.

Next, we need to calculate the proportion of floor space occupied by Department 3:

Proportion of floor space = floor space of department 3 / total floor space
= 8500 / 21000
= 0.4048

Finally, we can allocate the total rent according to the proportion of floor space:

Rent for Department 3 = proportion of floor space * total rent
= 0.4048 * $106,000
= $51,748.80

Therefore, the best choice is A) $51,748.

Marsden Company Has Three Departments Occupying the Following Amount of Floor