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Juanita earns $66,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the M.B.A program at Dalhousie University. If

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Juanita earns $66,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the M.B.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 566,000 Annual tuition and fees 13,100 Annual book and supply expense 3,200 Monthly living expenses in Mexico City 910 Monthly living expenses in Halifax 1,700 Monthly auto expenses in Mexico city 361 Monthly auto expenses in Halifax 361 Cost of two business suits purchased just prior to resigning 6201 Moving expenses 5,700 Required: a) Calculate the following in the context of Juanita's decision: (i) Total sunk costs (if any) (2 marks) (ii) Total differential or incremental costs (if any) (6 marks) (iii) Total opportunity costs (if any) (2 marks) b) What is your best estimate of the total cost to Juanita of earning an M.B.A. 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 to make a rational decision to pursue and successfully complete the MBA program at Dalhousie? Explain. (4 marks)

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