MC Qu. 98 A company rents a building with.. A company rents a building with a to

Question

MC Qu. 98 A company rents a building with.. A company rents a building with a total of 130,000 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 $39,000 How much of the monthly rental expense should be allocated to a department that occupies 13,000 square feet on the first floor? (Do not round your intermediate calcufations.) Mult ple Choice MacBook Ai 9 command commandoption

Explanation / Answer

Total Space of a building = 130000 square feet

Space of first floor = Space of second floor = 130000/2 = 65000 square feet

Total Monthly rent of building = $39000

Rent of first floor = 2 * rent of second floor

Let rent of second floor be x

then rent of third floor will be 2x

This implies, total rent = x + 2x = 3x = 39000

x = 13000

Rent of first floor i.e., 65000 square feet = 2 * 13000 = $26000

Rent per square feet on first floor = 26000 / 65000 = $0.4

Rent allocated to department that occupies 13000 square feet on first floor

= 0.4 * 13000

= $5200

Correct Option is $5200

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