Answer the Following Questions Using the Information Below

question 33

Multiple Choice

Answer the following questions using the information below:
Emrald Corp currently uses a manufacturing facility costing $500,000 per year; 90% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 10% 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) $40,000
• B) $50,000
• C) $46,000
• D) $42,000

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Definitions:

Business Plan

A documented strategy for a new business that outlines goals, reasons they are attainable, and plans for reaching them.

Operating Report

A document or statement that provides an overview of an organization's operational activities, performance, and results over a specific period.

Position Plan

A strategic outline detailing one's intentions or desired achievements in a professional context.

Policy Report

An official document that outlines the stance, guidelines, or intentions of an organization, government, or group on a specific public issue or policy area.