Answer the Following Questions Using the Information Below

question 10

Multiple Choice

Answer the following questions using the information below:
Harbor Corp currently leases a corporate suite in an office building for a cost of $280,000 a year. Only 80% of the corporate suite is currently being used. A start-up business has proposed a plan that would use the other 20% of the suite and increase the overall costs of maintaining the space by $20,000.
-If the incremental method were used,what amount of cost would be allocated to the start-up business?

• A) $20,000
• B) $300,000
• C) $60,000
• D) $75,000

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Definitions:

Means-End Analysis

A problem-solving technique that involves breaking down the problem into smaller parts to achieve the desired end state.

Stroop Effect

A demonstration of cognitive interference where the brain's reaction time slows down when it has to deal with conflicting information.

Automaticity

The ability to perform tasks without occupying the mind with the low-level details required, typically developed through repetition and practice.

Mental Processes

Mental processes involve the internal, cognitive operations that underlie all human thought, behavior, emotions, and experiences.