An outside company provides security services for a department store for $1,200 per month. Management allocates this cost across the store’s four departments based on the square feet each department occupies. Using the information below, what is the cost allocated to the Men’s department?
Department Department Square Feet
Men’s 800
Women’s 1,000
Children’s 600
multiple choice
$400 Correct
$500
$300
$533
Explanation
The total square footage is 2,400 (800 + 1,000 + 600). The Men’s department percentage is 800/2,400 = 33%. $1,200 × 0.33 = $400.
No comments:
Post a Comment