Assume That Facility Costs Are $350,000 Per Year for a Plant

Multiple Choice

Assume that facility costs are $350,000 per year for a plant occupying 20,000 square feet.The cost per square foot is $17.50.A value stream occupying 10,000 square feet would be assigned a cost of $175,000.If the value-stream manager figures out how to do the same tasks with 5,000 square feet, the cost would be reduced to:

A) $87,500.
B) $77,000.
C) $175,000.
D) $200,500.