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41. A company rents a building with a total of 300,000 square feet, which are ev

ID: 2485886 • Letter: 4

Question

41.

A company rents a building with a total of 300,000 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 $45,000. How much of the monthly rental expense should be allocated to a department that occupies 17,000 square feet on the first floor? (Do not round your intermediate calculations.)

$2,550.

$8,500.

$5,950.

$13,600.

$3,400.

A company rents a building with a total of 300,000 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 $45,000. How much of the monthly rental expense should be allocated to a department that occupies 17,000 square feet on the first floor? (Do not round your intermediate calculations.)

Explanation / Answer

$45,000/ 300,000 square feet* 17,000 square feet =$2,550.

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