Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
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Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
Alternative A | Alternative B | ||||
Materials costs | $ | 47,000 | $ | 64,100 | |
Processing costs | $ | 43,300 | $ | 43,300 | |
Equipment rental | $ | 15,100 | $ | 15,100 | |
Occupancy costs | $ | 17,200 | $ | 25,500 | |
What is the financial advantage (disadvantage) of Alternative B over Alternative A?
a. $122,600
b. $(25,400)
c. $148,000
d. $(135,300)
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