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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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