Question 9

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

Alternative A Alternative B Materials costs $ 40,000 $ 56,000 Processing costs $ 37,000 $ 37,000 Equipment rental $ 13,000 $ 13,000 Occupancy costs $ 15,000 $ 22,000

What is the financial advantage (disadvantage) of Alternative B over Alternative A?

$105,000 $23,000 $128,000 $116,500