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?
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
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