How much of the insurance premium should be allocated

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Reference no: EM13289630

The owner of a convenience store is considering adding a take-out sandwich section to her offerings. The new activity will occupy 25% of the space and account for 30% of total revenues. Property insurance on the building is $9,000 per year and will not change because of the new activity. How much of the insurance premium should be allocated to the new product line?

A) $2,700
B) $2,475
C) $2,250
D) $0.00

Reference no: EM13289630

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