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Juanita carns $65,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the MB.A program at Dalhousie University.

 

Juanita carns $65,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the MB.A program at Dalhousie University. If accepted, she will resign and move to Halifax, Nova Scotia. Juanita has assembled the following data to make the decision: Juanita's annual salary $65,000 13,200 3,300 920 1,700 362 Annual tuition and fees Annual book and supply expense Monthly living expenses in Mexico City Monthly living expenses in Halifax Monthly auto expenses in Mexico city Monthly auto expenses in HalifaxI Cost of two business suits purchased just prior to resigning 362 630 Moving expenses 5,800 Required: a) Calculate the following in the context of Juanita's decision @ Total sunk costs (if any) (2 marks) (i1) Total differential or incremental costs (if any) (6 marks) (1) Total opportunity costs (if any) (2 marks) b) What is your best estimate of the total cost to Juanita of carning an M.BA. degree if it will take her 12 months to complete the program? (5 marks) c). Suppose you are Juanita. What specific additional information would you need in order, te make a rational decision to pursue and successfully complete the MBA program at Dalhousie? Explain. (4 marks)

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