Juanita earns $67,000 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

$67,000

Annual tuition and fees

13,000

Annual book and supply expense

3,100

Monthly living expenses in Mexico City

900

Monthly living expenses in Halifax

1,700

Monthly auto expenses in Mexico city

360

Monthly auto expenses in Halifax

360

Cost of two business suits purchased just prior to resigning

610

Moving expenses

5,600

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)