The corporation currently uses a manufacturing facility

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The Corporation currently uses a manufacturing facility costing $500,000 per year; 75% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 25% of the facility and increase the overall costs of maintaining the space by 5%.

If the incremental method were used, what amount of cost would be allocated to the start-up business?

Reference no: EM13600125

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