Question
Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $ 44,000
Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
| Alternative A | Alternative B | ||||||
| Materials costs | $ | 44,000 | $ | 58,400 | |||
| Processing costs | $ | 40,400 | $ | 40,400 | |||
| Equipment rental | $ | 14,000 | $ | 14,000 | |||
| Occupancy costs | $ | 15,700 | $ | 23,600 | |||
What is the financial advantage (disadvantage) of Alternative B over Alternative A?
Multiple Choice
-
$114,100
-
$(22,300)
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$136,400
-
$125,250
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Management Audits For Excellence
Authors: Dorsey J. Talley
1st Edition
0873890396, 978-0873890397
