Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
The Cold Spring Harbor Corporation currently leases a corporate suite in an office building for a cost of $180,000 a year. Only 70% of the corporate suite is currently being used. A start-up business has proposed a plan that would use the other 30% 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) $54,000
C) $60,000
D) $74,000