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Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $27,000 $62,000

Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:

Alternative A Alternative B
Materials costs $27,000 $62,000
Processing costs $33,000 $33,000
Equipment rental $10,800 $28,400
Occupancy costs $19,400 $27,400

What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?

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