Question: Philip is choosing between model A (a budget model) and model B (with more features and a higher purchase price). What incremental costs would Philip

Philip is choosing between model A (a budget

Philip is choosing between model A (a budget model) and model B (with more features and a higher purchase price). What incremental costs would Philip incur if he chose model B instead of the less expensive Model A? Cost Items Model A Model B Purchase price $10,000 $17,500 Installation costs 3,500 5,000 Annual Maintenance costs 2,500 750 Annual utility expenses 1,200 2,000 Disposal costs after useful life 700 500 As your suggestion, which model is preferred? (Multi-choice question, wrong selection will cut off 2 points.) Select one or more: a. Because Model B has more features, a decision would also have to consider the incremental benefits offered by those features b. The incremental annual maintenance cost of B is 1750/year. c. Notice that the incremental costs of model B are both "+" and "-", Model A would be suggested since it has a lower total cost. d. The incremental cost of B is $7500 on purchase price which means Model B costs more than Model A

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