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I am working on a standard capital budgeting analysis and I need help on the following:

Question: "If a center is built, the organization's cash overhead costs will increase by $35,000 annually, primarily for housekeeping and ground maintenance. In addition, the center will be allocating $15,000 of the organization's current 3.5 million in administrative overhead costs".

Is the incremental overhead a combination of 35,000 + 15,000? OR is there more to it?

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Incremental... View the full answer

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