Just for Kix dance studio has decided they need extra space to hold their classes but do not need the facility full-time. They found the ideal location, and a local photographer has decided they would go in and share the cost of the facility. The cost of the facility is $2,000 per month. Both the dance studio and photographer rent a similar space. The photographer pays $1,200 per month, and the dance studio pays $1,800 per month. Using the stand-alone cost allocation, how much of the cost should be allocated to each?

Question

Quizplus · Accepted Answer

$1,800 + $1,200 = $3,000
$1,800 ÷ $2,000 x $3,000 = $1,200
$1,200 ÷ $2,000 x $3,000 = $800
Dance cost + Photo cost = total cost
Dance ÷ total cost x com cost = Dance share
Photo ÷ total cost x com cost = Photo share

Just for Kix Dance Studio Has Decided They Need Extra