Answer the Following Questions Using the Information Below

question 101

Multiple Choice

Answer the following questions using the information below:
The Salmon Bay Corporation currently uses a manufacturing facility costing $200,000 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?

• A)$10,000
• B)$50,000
• C)$40,000
• D)$42,000

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Definitions:

Trachea

The windpipe; a tube that connects the pharynx and larynx to the lungs, allowing the passage of air.

Epiglottis

Structure that covers the glottis, the air-tract opening, during the process of swallowing.

Bronchioles

The small passages in the lungs that lead from the bronchi to the alveoli, involved in the process of breathing.

Saliva

A clear liquid secreted by the salivary glands in the mouth, containing enzymes that aid in the digestion of carbohydrates and serve as a lubricant for food.