Auto Market pays $128,000 rent each year for its two story building. The space in this building is occupied by five departments as specified here.
|
Paint department |
1,200 square feet of first floor space |
|
Engine department |
3,600 square feet of first floor space |
|
Window department |
1,920 square feet of second floor space |
|
Electrical department |
1,056 square feet of second floor space |
|
Accessory department |
1,824 square feet of second floor space |
The company allocates 65% of total rent expense to the first floor and 35% to the second floor, and then allocates rent expense for each floor to the departments occupying that floor on the basis of space occupied. Determine the rent expense to be allocated to each department. (Round percents to the nearest one tenth and dollar amounts to the nearest whole dollar.)
2. For a recent year L’Oreal reported operating profit of €3,110 (in millions) for its Cosmetics division. Total assets were €11,314 at the beginning of the year and €12,988 (in millions) at the end of the year. Compute return on investment for the year. State your answer as a percent, rounded to one decimal.