Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:
|
Alternative A |
Alternative B |
Materials costs |
$37,000 |
$49,000 |
Processing costs |
$43,000 |
$43,000 |
Equipment rental |
$10,400 |
$28,200 |
Occupancy costs |
$19,200 |
$29,400 |
What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?