Question
Freida earns $68,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the BBA program. If accepted, she will
Freida earns $68,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the BBA program. If accepted, she will resign and move to Halifax, Nova Scotia. Frieda has assembled the following data to make the decision:
Friedas current annual salary (2% raise expected next year) | $68,000 |
Annual tuition and fees | 14,000 |
Annual book and supply expense | 3,000 |
Monthly living expenses in Mexico City | 800 |
Monthly living expenses in Halifax | 1,600 |
Monthly auto expenses in Mexico City | 350 |
Monthly auto expenses in Halifax | 350 |
Cost of two business suits purchased just prior to resigning | 600 |
Moving expenses | 5,500 |
1. Calculate the following in the context of Frieda's decision: A. Total sunk costs (if any) B. Total differential or incremental costs (if any) C. Total opportunity costs (if any)
2.What is your best estimate of the total cost to Friedas of earning a BBA degree if it will take her 24 months to complete the program?
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