The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the depar...
Question 1 Report
The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the departments are 3:2:5 respectively. What is the rent allocated to clothing department?
Answer Details
To allocate the rent expense to the clothing department, we need to use the ratio of the floor spaces occupied by each department.
Let's first add up the ratio of the floor spaces:
3 + 2 + 5 = 10
This means that the clothing department occupies 5/10 (or 1/2) of the total floor space.
To allocate the rent expense to the clothing department, we need to multiply the total rent expense by the proportion of the floor space that the clothing department occupies:
₦3500 x 1/2 = ₦1750
Therefore, the rent allocated to the clothing department is ₦1750.
So, the correct answer is option (C) ₦1750.
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