Marsden Company Has Three Departments Occupying the Following Amount of Floor

question 16

Multiple Choice

Marsden Company has three departments occupying the following amount of floor space: How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)

• A) $100,000
• B) $50,000
• C) $66,667
• D) None of the answers are correct.

---

Definitions:

South Atlantic Drift

A significant ocean current in the southern Atlantic Ocean that circulates warm water and influences climate patterns in the surrounding regions.

Vertical Hierarchy

An organizational structure where power and authority are concentrated at the top, and decisions flow downward.

Downward Communication

A form of organizational communication that flows from higher levels of the organization to lower levels, typically used for giving instructions, providing feedback, or conveying decisions.

Horizontal Specialization

The division of work in an organization where tasks are divided among departments or teams based on expertise or functions, leading to specialization in certain areas.