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Answer the following question(s) using the information below:
The Sturgeon Bay Corporation currently uses a manufacturing facility costing $400,000 per year; 80% of the facility's capacity is currently being used.A start-up business has proposed a plan that would utilize the other 20% of the facility and increase the overall costs of maintaining the space by 5%.
-If the incremental method were used, what amount of cost would be allocated to the start-up business?
Marginal Cost
The incremental cost of producing an extra unit of a good or service.
Job Enlargement
Increasing the scope of a job by extending the range of its job duties and responsibilities.
Task Variety
The extent to which a job includes a range of different activities requiring varied skills and talents.
Vertical Loading
The method of adding new responsibilities and tasks to a job at the same level of the organization, aimed at enhancing the job's complexity and the employee's autonomy.
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