Harbor Corp currently leases a corporate suite in an office building for a cost of $360,000 a year. Only 80% of the corporate suite is currently being used. A start-up business has proposed a plan that would use the other 20% of the suite and increase the overall costs of maintaining the space by $20,484. If the incremental method were used, what amount of cost would be allocated to the start-up business?
A) $20,484
B) $380,484
C) $76,097
D) $88,387

Question

Quizplus · Accepted Answer

Amount allocated = $20,484, the increased cost of maintaining the space

Harbor Corp Currently Leases a Corporate Suite in an Office