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A company rents a building with a total of 80,000 square feet, which are evenly divided between two floors. The total monthly rent for the
A company rents a building with a total of 80,000 square feet, which are evenly divided between two floors. The total monthly rent for the building is $75,000. The company allocates $50,000 of total rent expense to the first floor and $25,000 of total rent expense to the second floor. How much of the monthly rental expense should be allocated to a department that occupies 16,000 square feet on the first floor?
Select one:
a. $5,000.
b. $7,500.
c. $10,000.
d. $20,000.
e. $12,500.
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