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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 50 clients against an average share of Emcos 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.
Elinors assessment of Website management is that its costs are simply driven by the number of customers 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 500 rented weeks last summer.
Based on Elinors estimates, the total cost for each of the three activities last year was $85,000 for Website management, $91,000 for Basic rental contract management, and $40,000 for Cleaning and inspection.
Merle Lynch, one of Emcos customers, had 10 one-week contracts last summer. According to Elinors estimates, what was the total ABC cost for the services used by Mr. Lynch last year?
Group of answer choices
None of the other three answers is correct.
$4,380
$1,020
$3,400

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