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Suppose reeder corp has three divisions all using the

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Suppose Reeder, Corp., has three divisions, all using the warehouse: Pipes, Seals, and Flanges. The total warehousing cost is $40,000. Total warehouse space is 100,000 square feet, of which Pipes uses 30,000 square feet, Seals uses 25,000 square feet, and Flanges uses 20,000 square feet. The remaining warehouse space is used by the warehouse manager.

Which of the following is true?

a. Traceable fixed costs are $30,000.

c. Traceable fixed costs are $40,000.

b. Common fixed costs are $40,000.

d. Common fixed costs are $30,000.

Reference no: EM13483850

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