Answer the Following Questions Using the Information Below

question 133

Multiple Choice

Answer the following questions using the information below:
The Carpentaria Corporation currently uses a manufacturing facility costing $550 000 per year;80% of the facility's capacity is currently being used.A start-up business has proposed a plan that would utilise the other 20% of the facility and increase the overall costs of maintaining the space by 5%.
-If the stand-alone method were used,what amount of cost would be allocated to the start-up business?

• A)$440 000
• B)$20 000
• C)$80 000
• D)$115 500