7) If the incremental method were used, what amount of cost would be allocated to the start-upbusiness?A) $20,000B) $54,000C) $60,000D) $74,000

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 hasproposed a plan that would use the other 30% of the suite and increase the overall costs of maintainingthe space by $20,000.6) If the stand-alone method were used, what amount of cost would be allocated to the start-up business?A) $20,000B) $54,000C) $60,000D) $74,000

The Salmon Bay Corporation currently uses a manufacturing facility costing $200,000 per year; 80% ofthe facility's capacity is currently being used. A start-up business has proposed a plan that would utilizethe other 20% of the facility and increase the overall costs of maintaining the space by 5%.4) If the stand-alone method were used, what amount of cost would be allocated to the start-up business?A) $40,000B) $50,000C) $40,000D) $42,000

Fill in the Blank QuestionFill in the blank question.Incremental is incremental revenues minus incremental costs.

Multiple Choice QuestionA company currently makes a component used in production. The per unit costs incurred to make the component include: Direct materials: $5; Direct labor: $2; Overhead: $4; Total cost: $11. Twenty-five percent of the overhead costs are considered incremental. The company can purchase the component from another source for $10. The company should do which of the following?Multiple choice question.The company can be indifferent because incremental costs are $10 and the purchase price is $10.The company should buy the components to save $1 per unit.The company should make the components because incremental costs are $2 less than the purchase price.The company should buy the components to save $2 per unit.

B. According to the function, what is her initial cost (e.g., maintaining the mower, buying gas,advertising)? Explain your answer in the context of this problem