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A retail store has 10,000 square feet of space and incurs rent costs of $5,000 per month. if department a uses 2,000 square feet of space, the amount of rent allocated to the department will be $ .

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The amount of rent allocated to the department A will be $1,000.

Given the following data:

  • Total space = 10,000 square feet.
  • Rent costs = $5,000 per month.
  • Department A space = 2,000 square feet.

How to calculate the amount of rents.

In this exercise, you're required to determine the amount of money that is being allocated to Department A. Thus, we would calculate the rent per square feet of space and then multiply by the amount of space used by Department A.

[tex]1 \;sq.\;ft. \;of\;space =\frac{Rental\;cost}{Total \;space} \\\\1 \;sq.\;ft. \;of\;space =\frac{5000}{10000}[/tex]

1 sq. ft. of space = $0.5 per square feet.

Department A = [tex]0.5 \times 2000[/tex]

Department A = $1,000.

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