Use the information to answer question below
……………………. Departments
……………………… P Q R
Sales value…………… N23,400
Selling expenses………. 1,100 N1,400 N1,280
Administrative expenses…N1,400 N1,000 N1,020
Cost of sales…………. N6,900…. N6,700 N5,500
Sales value of department Q doubles that of p, which is 1/3 of R. Depreciation which amounts to N1,800 is to be apportioned among the three departments in the ratio 3:5:7 respectively.
What is the sales value of department R?
-
A.
N7,800 -
B.
N11,700 -
C.
N23,400 -
D.
N35,100
Correct Answer: Option D
Explanation
sales volume of Q = 23,400
If sales volume of Q doubles that of p which is (frac{1}{3}) of R we have;
for P = 23,400 ÷ 2p
p = (frac{23,400}{2}) = 11,700
Since R is (frac{1}{3}) of P, hence we have,
R= 1/3P
R = 3 x P
R = (frac{3}times{11700}) = 35,100