Emrald Corp Currently Uses a Manufacturing Facility Costing $520,000 Per

question 44

Multiple Choice

Emrald Corp currently uses a manufacturing facility costing $520,000 per year; 85% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 15% of the facility and increase the overall costs of maintaining the space by 12%. If the stand-alone method were used, what amount of cost would be allocated to the start-up business?

• A) $75,660
• B) $78,000
• C) $66,300
• D) $87,360

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