The floor space occupied by manufacturing and administration departments in a company is 200 sqm and 300 sqm respectively. ₦20 000 rent incurred is shared u...
Question 1 Report
The floor space occupied by manufacturing and administration departments in a company is 200 sqm and 300 sqm respectively. ₦20 000 rent incurred is shared using floor space occupied. How much is the rent chargeable to manufacturing?
Answer Details
The rent is being shared based on the floor space occupied by each department. The total floor space of the company is 200 sqm + 300 sqm = 500 sqm. The proportion of the floor space occupied by the manufacturing department is 200 sqm ÷ 500 sqm = 0.4 or 40%, and the proportion of the floor space occupied by the administration department is 300 sqm ÷ 500 sqm = 0.6 or 60%.
To determine the rent chargeable to the manufacturing department, we multiply the total rent incurred by the proportion of the floor space occupied by the manufacturing department, which is 0.4 or 40%:
Rent chargeable to manufacturing = 0.4 × ₦20,000 = ₦8,000
Therefore, the rent chargeable to the manufacturing department is ₦8,000.
Answer: ₦8 000
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