A company has departments M and N. The expenses incurred wholly in M is ₦5000. General expenses incurred amount to₦25000. Expenses are apportioned in the ra...

Answer Details

The total expenses incurred by the company include expenses that are wholly incurred by department M and general expenses that are to be apportioned between department M and department N. The expenses incurred wholly in M is ₦5000, and the general expenses incurred amount to ₦25000. To apportion the expenses between departments M and N, we need to determine the total ratio, which is 2 + 3 = 5. This means that for every ₦5 spent, ₦2 is spent on department M, and ₦3 is spent on department N. To find N's share of the expenses, we first need to calculate the total expenses that are to be apportioned between departments M and N. This is ₦25000, the general expenses incurred. To determine department N's share, we need to multiply the total expenses by the ratio that represents department N's share, which is 3/5. N's share of the expenses is, therefore, 3/5 * ₦25000 = ₦15000. Therefore, the correct answer is ₦15000.