Question
Windsor Corp. produces four different types of high-end paint pens. The original factory space, which is 4,000 square feet, was dedicated to the very first
Windsor Corp. produces four different types of high-end paint pens. The original factory space, which is 4,000 square feet, was dedicated to the very first pen. As the new pens were added, that space was split up into a dedicated line for each pen. Originally, with just one type of pen, the insurance cost on the space was $1,900. It bumped up to $2,100 when the second line was added, increased to $2,290 when the third line was added, and now runs $2,390 per year for the four lines. If the incremental method is used, how much of the $2,390 cost will ile allocated to each type of pen?
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