Hello!

Just need the explanation for this question, and why couldn't we just solve for = 672000*18% = 120,960

Emrald Corp currently uses a manufacturing facility costing $600,000 per year, 82% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 18% of the facility and increase he overall costs o maintaining the space by 12% f the incremental method were used what amount of cost would be allocated to the start up business? OA $120,960 OB. $101,520 OC. $88,560 D. $72,000