Question

Marsden company has three departments occupying the following amount of floor space: department 124,000 square feet, department 211,800 square feet, department 334,000 square feet. How much store rent should be allocated to department 3 if the total rent is equal to $109,000?

Answer 1

To find the store rent allocated to department 3, calculate the proportion of floor space occupied by department 3 and multiply it by the total rent. Using the given floor space values, the proportion is 334,000 square feet / 669,800 square feet. Multiply this proportion by $109,000 to find the store rent allocated to department 3.

Step-by-step explanation:

To calculate the store rent allocated to department 3, we need to find the proportion of floor space occupied by department 3 relative to the total floor space occupied by all departments. Using the given information, the total floor space occupied by all departments is 124,000 square feet + 211,800 square feet + 334,000 square feet = 669,800 square feet. The proportion of floor space occupied by department 3 is 334,000 square feet / 669,800 square feet. To calculate the store rent allocated to department 3, we need to multiply this proportion by the total rent of $109,000. Therefore, the store rent allocated to department 3 is (334,000 square feet / 669,800 square feet) * $109,000.