San Juan, Inc. is considering two alternatives: A and B. The costs associated with the...
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San Juan, Inc. is considering two alternatives: A and B. The costs associated with the alternatives are listed below:
| Alternative A | Alternative B | ||||||
| Material costs | $ | 35,000 | $ | 60,000 | |||
| Processing costs | 40,000 | 60,000 | |||||
| Building costs | 13,100 | 30,000 | |||||
| Equipment rental | 20,100 | 20,100 | |||||
If only the differential costs of the two decisions are considered, the total cost of Alternative B is
$139,150.
$61,900.
$108,200.
$170,100.
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