A company rents a building with a total of 50,000 square feet,which are evenly divided between two floors.The company allocates the rent for space on the first floor at twice the rate of space on the second floor.The total monthly rent for the building is $30,000.How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the second floor?
A)$8,000.
B)$5,000.
C)$3,000.
D)$4,000.
E)$2,000.

Question

Quizplus · Accepted Answer

Let x be the rate of rent per square foot on the second floor. 
Then the rate of rent per square foot on the first floor is 2x.

Let's denote the total area of the building by A, so we have A = 50,000 sq ft.
Since the area is evenly divided between the two floors, we have 25,000 sq ft on each floor.

Let's denote the rental expense for the second floor by R. 
Then the rental expense for the first floor is 2R.

We know that the total monthly rent for the building is $30,000. So we have:
R + 2R = 30,000
3R = 30,000 
R = 10,000

Therefore, the rental expense for the second floor (which has an area of 10,000 sq ft) is:
10,000 sq ft * x rate/sq ft = $10,000 x
where x is the rate of rent per square foot on the second floor.

We don't know x, but we can use the fact that the rental expense for the first floor (which has an area of 25,000 sq ft) is twice that of the second floor: 
25,000 sq ft * 2x rate/sq ft = $50,000 x

We know that the total rental expense for the whole building is $30,000, so we have:
$10,000 x + $50,000 x = $30,000
$60,000 x = $30,000
x = $0.50/sq ft

Therefore, the rental expense for the department that occupies 10,000 square feet on the second floor is:
10,000 sq ft * $0.50/sq ft = $5,000

So the answer is D) $4,000.

A Company Rents a Building with a Total of 50,000