Mass Media Company Departmental Expense Allocations
For the year ended December 31
Allocation Expense General Office TV Radio
Base Account Dept. Dept. Dept.
Direct Expenses
Salaries Payroll records 60000 45000 20000
Supplies Requisitions 5000 3000 2000
Indirect Expenses
Rent expense Floor space 60000 42000 18000
Utilities expense Floor space 10000 7000 3000
General office expense 50000 50000
Total department expenses 190000 50000 97000 55500
Mass Media Company
Floor Space Analysis
Square Percent of Rent Expense Utilities Expense
Feet Square Feet Allocation Allocation
TV Department 2,800 70% 30% $42,000 $7,000
Radio Department 1200 30% 18000 3000
Total 4000 100% 60000 10000
Rent expense of $3,000 is allocated to Department A and Department B based on square footage. Department A has 5,000 square feet and Department B has 2,500 square feet. The dollar amount of rent expense allocated to Department B is.

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?