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

question 208

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 second floor?

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

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Definitions:

Security B

A distinct category of financial assets that can include stocks, bonds, options, and futures, offering various investment and risk profiles.

Weights

Factors or coefficients that are assigned to elements of a calculation or model to determine their relative importance or impact.

Standard Deviation

A quantifiable statistical metric that indicates the degree of spread or variability in a dataset.

Portfolio

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.