Given the building layout for Store A, Store B, Store C, and Store D, what portion of the shared $7500 maintenance costs should be apportioned to Store A? A B C D 625 ft² 625 ft² 2500ft² 2500ft² apportioned cost = $ [?] Round you answer to the nearest hundredth. Enter

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Apportioning Maintenance Costs Based on Store Layout**

**Problem Statement:**
Given the building layout for Store A, Store B, Store C, and Store D, what portion of the shared $7500 maintenance costs should be apportioned to Store A?

**Building Layout:**
- Store A: 2500 ft²
- Store B: 625 ft²
- Store C: 625 ft²
- Store D: 2500 ft²

**Diagram:**
A visual representation of the layout is shown below with the respective floor areas.

```
-----------------------------------------------------
|                       | B  | C  |                     |
|          A                |625|625|       D              |
|       2500 ft²          | ft²| ft²|    2500 ft²       |
-----------------------------------------------------
```

**Task:**
Calculate the apportioned maintenance cost for Store A based on its floor area compared to the total area of all stores.

**Calculation:**
The total floor area for all stores combined is:
2500 ft² (A) + 625 ft² (B) + 625 ft² (C) + 2500 ft² (D) = 6250 ft²

**Proportion Calculation:**
\[ \text{Proportion of Store A} = \frac{\text{Store A's area}}{\text{Total area}} = \frac{2500}{6250} = 0.4 \]

**Apportioned Cost:**
\[ \text{Apportioned cost for Store A} = \text{Proportion of Store A} \times \text{Total maintenance costs} \]
\[ = 0.4 \times 7500 = \$3000 \]

**Answer:**
The apportioned maintenance cost for Store A is $3000.

**Note:** Round your answer to the nearest hundredth where necessary.
Transcribed Image Text:**Apportioning Maintenance Costs Based on Store Layout** **Problem Statement:** Given the building layout for Store A, Store B, Store C, and Store D, what portion of the shared $7500 maintenance costs should be apportioned to Store A? **Building Layout:** - Store A: 2500 ft² - Store B: 625 ft² - Store C: 625 ft² - Store D: 2500 ft² **Diagram:** A visual representation of the layout is shown below with the respective floor areas. ``` ----------------------------------------------------- | | B | C | | | A |625|625| D | | 2500 ft² | ft²| ft²| 2500 ft² | ----------------------------------------------------- ``` **Task:** Calculate the apportioned maintenance cost for Store A based on its floor area compared to the total area of all stores. **Calculation:** The total floor area for all stores combined is: 2500 ft² (A) + 625 ft² (B) + 625 ft² (C) + 2500 ft² (D) = 6250 ft² **Proportion Calculation:** \[ \text{Proportion of Store A} = \frac{\text{Store A's area}}{\text{Total area}} = \frac{2500}{6250} = 0.4 \] **Apportioned Cost:** \[ \text{Apportioned cost for Store A} = \text{Proportion of Store A} \times \text{Total maintenance costs} \] \[ = 0.4 \times 7500 = \$3000 \] **Answer:** The apportioned maintenance cost for Store A is $3000. **Note:** Round your answer to the nearest hundredth where necessary.
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