Cutler Hammer currently utilizes a manufacturing facility for $$200,000$ per year. The facility is used at $70$ percent capacity. The shipping department has proposed a plan in which it would utilize the other $30$ percent plant capacity for the company's shipping plus handling the shipping of several nearby businesses. The company's consulting firm estimated that the overall costs of maintaining the space would increase by $12$ percent.

The shipping manager is interested in the amount that would be allocated under the incremental method.

Question $50$Answer

a$.$

$$60,000$

b$.$

$$84,000$

c$.$

$$24,000$

d$.$

$$67,200$

e$.$

$$70,000$