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Answer the Following Questions Using the Information Below

Question 116

Multiple Choice

Answer the following questions using the information below:
The Darwin Harbour Corporation currently leases a corporate suite in an office building for a cost of $90 000 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 $10 000.
-If the incremental method were used,what amount of cost would be allocated to the start-up business?


A) $10 000
B) $30 000
C) $27 000
D) $37 000

Correct Answer:

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