Emrald Corp currently uses a manufacturing facility costing $470,000 per year; 88% of the facility's...
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Emrald Corp currently uses a manufacturing facility costing $470,000 per year; 88% of the facility's capacity is currently being used. A startup business has proposed a plan that would utilize the other 12% of the facility and increase the overall costs of maintaining the space by 9%. If the incremental method were used, what amount of cost would be allocated to the startup business?
A. $49,632
B. $61,476
C. $54,708
D. $ 42,300
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