A Company Rents a Building with a Total of 50,000

question 141

Multiple Choice

A company rents a building with a total of 50,000 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 $30,000.
- How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?

• A) $2,000.
• B) $4,000.
• C) $5,000.
• D) $3,000.
• E) $8,000.

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