Question

Rates and taxes

amount to R 14000
per month, and must
be apportioned in
relation to floor space
(the factory takes up
75% of the total floor
space of the entire
premises​

Answer 1

The Rates and Taxes:

Factory = R 10,500

Office = R 3,500

Step-by-step explanation:

a) Data and Calculations:

Total amount for Rates and Taxes = R 14,000

Factory space = 75%

Therefore, office space = 25% (100 - 75%)

Apportionment of the Rates and Taxes for the month:

Factory = R 10,500 (R 14,000 * 75%)

Office = R 3,500 ( R 14,000 * 25%)

b) Each function of the business entity is apportioned a part of the Rates and Taxes according to the size of the floor space they take up. This shows that Rates and Taxes are dependent on floor space.