Emrald Corp currently uses a manufacturing facility costing $470,000 per year; 88% of the facility's capacity...
Emrald Corp currently uses a manufacturing facility costing $470,000 per year; 88% of the facility's capacity is currently being used. A start−up business has proposed a plan that would utilize the other 12% of the facility and increase the overall costs of maintaining the space by 9%. If the incremental method were used, what amount of cost would be allocated to the start−up business?
A. $49,632
B. $61,476
C. $54,708
D. $ 42,300
Homework Answers
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Cost to be allocated to startup business as per incremental method = 470,000 * 9% = $42,300 Option D is the answer |
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