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Question 20 (2 points) Tennessee Building Corp. has a building that is shared by two tenants; Hot Sauce Co. and Peppery Fire Sauce Inc. In
Question 20 (2 points) Tennessee Building Corp. has a building that is shared by two tenants; Hot Sauce Co. and Peppery Fire Sauce Inc. In the building is a cafeteria that both companies use. The overall annual cost of the cafeteria is $275,000. Tennessee has a policy of billing back the costs of shared facilities to the tenants, and decided to use the number of meals served as the basis of allocation to the tenants. Hot Sauce Co.'s employees purchased 6,000 meals in the year, and Peppery Fire's employees purchased 4,200 meals in the year. How much should Tennessee bill to Peppery Fire Sauce Inc. for its use of the cafeteria in the year? $192,500 $161,765 $82,500 $113,235
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