E$7-4($Static$)$ Identifying Relevant Costs and Calculating Differential Costs $[$LO $7-2]$

Maria Turner just graduated from college with a degree in accounting. She planned to enroll immediately in the master$$s program at her university but has been offered a lucrative job at a well$-$known company. The job is exactly what Maria hoped to find after obtaining her graduate degree.

In anticipation of master$$s program classes, Maria already spent $$450$ to apply for the program. Tuition is $$8,000$ per year, and the program will take two years to complete. Maria$$s expected salary after completing the master$$s program is approximately $$60,000.$ If she pursues the master$$s degree, Maria would stay in her current home that is near the campus and costs $$600$ per month in rent. She also would remain at her current job that pays $$25,000$ per year. Additionally, Maria$$s immediate family is nearby. She spends considerable time with family and friends, especially during the holidays. This would not be possible if she accepts the job offer because of the distance from her new location.

The job Maria has been offered includes a salary of $$50,000.$ She would have to relocate to another state, but her employer would pay $$5,000$ for moving expenses. Maria$$s rent in the new location would be approximately $$800$ per month. The new location is a fast$-$growing, active city that offers a number of cultural activities that Maria would enjoy. The city is also home to Maria$$s favorite Major League Baseball team, and she would expect to buy season tickets.

Required:

Help Maria make her decision by categorizing the factors involved in making her choice. Complete the following chart regarding the factors in Maria$$s decision. A single factor may have multiple columns checked.

For each of the following items, identify the differential amount in Maria$$s alternatives. For example, the incremental cost of tuition is $$16,000$ if Maria chooses to pursue the master$$s degree.