Alleghany Community College Operates Four Departments Alleghany's Annual Building Rental Cost Is $270,000

question 119

Multiple Choice

Alleghany Community College operates four departments. The square footage used by each department is shown below. $\begin{array}{lc}\text { Department }&\text {Square Footage }\\\text { Accounting } & 5,000 \\\text { Marketing } &6,000 \\\text { Technology } &8,000 \\\text { Sciences } & \underline{5,000}\\\text { Total }& \underline{24,000}\end{array}$ Alleghany's annual building rental cost is $270,000.What amount of rent expense should be allocated to the Sciences Department? (Do not round intermediate calculations.)

• A) $56,250
• B) $67,500
• C) $90,000
• D) $270,000

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Definitions:

Perfectly Competitive Market

A theoretical market structure where many buyers and sellers exchange identical products, and no single entity can influence the market price.

Profit-maximizing

A principle or strategy where a business seeks to achieve the highest possible profit through its operations, pricing, and production decisions.

Total Cost

Total Cost is the sum of all costs, fixed and variable, incurred in the production of goods or the delivery of services.

Daily Profit

The financial gain or loss a business makes in a single day, calculated by subtracting total daily expenses from total daily revenue.