The Owner of a Convenience Store Is Considering Adding a Take-Away

question 22

Multiple Choice

The owner of a convenience store is considering adding a take-away sandwich section to her offerings.The new activity will occupy 25% of the space and account for 30% of total revenues.Property insurance on the building is $9,000 per year and will not change because of the new activity.How much of the insurance premium should be allocated to the new product line?

• A)$2,700
• B)$2,475
• C)$2,250
• D)$0.00

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