Use the information below to answer this question.A business has three departments x, y and zYou are given the following information Selling and distributio...

Use the information below to answer this question.A business has three departments x, y and zYou are given the following information Selling and distribution expenses ₦5200

Rent for the year₦6000

Department turnover floor space in square metres X ₦60,000 80 Y ₦80,000 60 Z ₦100,000 60How much rent is apportioned to department Z?

Answer Details

To determine how much rent is apportioned to department Z, we need to use the floor space occupied by department Z as a percentage of the total floor space occupied by all three departments. The total floor space occupied by all three departments is: 80 sqm (Department X) + 60 sqm (Department Y) + 60 sqm (Department Z) = 200 sqm The percentage of floor space occupied by department Z is: 60 sqm (Department Z) / 200 sqm (Total floor space) = 0.3 or 30% To apportion the rent to department Z, we need to multiply the total rent of ₦6,000 by the percentage of floor space occupied by department Z: ₦6,000 x 0.3 = ₦1,800 Therefore, the rent apportioned to department Z is ₦1,800.