Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed...
Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
| Alternative A | Alternative B | ||||||
| Materials costs | $ | 43,000 | $ | 57,300 | |||
| Processing costs | $ | 39,500 | $ | 39,500 | |||
| Equipment rental | $ | 13,700 | $ | 13,700 | |||
| Occupancy costs | $ | 15,400 | $ | 23,100 | |||
What is the financial advantage (disadvantage) of Alternative B over Alternative A?
Homework Answers
|
Financial advantage of Alternative B over Alternative A = Difference between Material costs and Occupancy costs = (43,000-57,300) + (15,400 - 23,100) = (22,000) |
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| Comment if you face any issues |
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Ouzts Corporation is considering Alternative A and Alternative
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please explain the right answer to me. thanks so
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