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Emco Rental Management provides service to clients who wish to rent out their properties to summer vacationers. Emco provides three basic services: Website management, Basic

Emco Rental Management provides service to clients who wish to rent out their properties to summer vacationers. Emco provides three basic services: Website management, Basic rental contract management, and Cleaning and inspection.

Emco charges its clients a flat 20% of their earned rents and evaluates profitability for each of their 55 clients against an average share of Emco's total annual costs. But Elinor Mae, the owner and general manager, wants to get better idea of customer profitability, so she has decided to put together a simple ABC cost analysis.

Elinor's assessment of Website management is that its costs are simply driven by the number of clients she has. This contrasts with Basic rental contract management, which is driven by the number of rental contracts, 350 last summer. Cleaning and inspection is done after each rented week. There were 550 rented weeks last summer.

Based on Elinor's estimates, the total cost for each of the three activities last year was $90,750 for Website management, $91,000 for Basic rental contract management, and $41,250 for Cleaning and inspection.

What activity cost rate for the Website management activity do Elinor's estimates imply?

A.None of the other three answers is correct

B.$75 per week rented

C.$1,650 per client

D.About $259 per contract

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