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...
Question 1 Report
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 ratio 2:3 for departments M and N respectively.
What is N's share of the expense?
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.
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