Answer the Following Question(s)using the Information Below

question 34

Multiple Choice

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 stand-alone method were used, what amount of cost would be allocated to the start-up business?

• A)$20,000
• B)$100,000
• C)$80,000
• D)$84,000
• E)$67,200

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Definitions:

Medical Treatment

Professional care or therapy provided to diagnose, prevent, or cure health problems.

Classification

The action or process of classifying something according to shared qualities or characteristics.

Burn

an injury to tissues caused by heat, chemicals, electricity, radiation, or sunlight, characterized by pain and varying degrees of skin damage.

Epidermis

The outermost layer of skin, serving as a barrier to protect the body against environmental threats.