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Note: Quantitative values in the question may differ from those in other similar questions on this quiz and on practice quizzes. Emco Rental Management provides

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Note: Quantitative values in the question may differ from those in other similar questions on this quiz and on practice quizzes. 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 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. Her own salary is $120,000 and she believes that she spends about 20% of her time managing the Cleaning and inspection activity. The remainder of her time is split evenly between Website management and Basic rental contract management. Her staff works only during the summer, with 60% of its effort devoted to Cleaning and inspection. The staff also help with the other service activities, mostly the Basic rental contract management. She feels they spend about 35% of their total effort on that activity. She paid her staff a total of $72,000 last summer. Other operating costs include Office Rent of $24,000 per year, annual Furniture and Equipment depreciation of $18,000, and Occupancy Costs, which totaled $22,000 last year. Elinor estimates that about 10% of each of those three resource categories is related to the Cleaning and inspection service activity. Of the remainder, 60% is related to Basic rental contract management and 40% goes with Website management. 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 500 rented weeks last summer. Based on Elinor's ABC estimates, whist was the total cost related to Website management last year? A. $73,600 B. None of the other three answers is correct C. About $86,600 D. $74,640

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