What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

A) $74,000
B) $32,000
C) $157,000
D) $86,000

Question

What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?A) $74,000B) $32,000C) $157,000D) $86,000

Jatin Khullar · Accepted Answer

Final Answer : C, Explanation :  The costs that are NOT direct costs of the Brentwood Store include advertising ($50,000), corporate rent ($50,000), corporate utilities ($7,000), and corporate accounting ($50,000). Adding these costs together gives a total of $157,000. Costs that are not direct costs of the Brentwood Store = Corporate legal office salaries + Corporate headquarters building lease + Central warehouse lease cost = $68,000 + $86,000 + $3,000 = $157,000Reference: CH01-Ref3Dake Corporation's relevant range of activity is 2,000 units to 6,000 units.When it produces and sells 4,000 units, its average costs per unit are as follows:

What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

A) $74,000
B) $32,000
C) $157,000
D) $86,000

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