Can someone please answer this question please answer it correctly and please show work please help me I need it
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Answer:
If the stand-alone method would be used the startup would pay $60,000.00.
Step-by-step explanation:
The current cost for Spring Harbor Corporation is $180,000.00, but they use only 70% of the corporate suite.
If the start-up divide the corporate suite, they will use only 30%, but the total cost will be 180,000.00 + 20,000.00 = 200,000.00
We add the values because 180,000.00 counts the cost of maintenance paid before.
Using the percentages to find the cost for the start-up:
So, $60,000.00 will be allocated to the start-up business.