t32

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

	Alternative A			Alternative B
Materials costs	$	51,000		$	68,900
Processing costs	$	46,900		$	46,900
Equipment rental	$	16,300		$	16,300
Occupancy costs	$	18,500		$	27,500

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

Multiple Choice

• $132,700

• $(26,900)

• $159,600

• $(146,150)