Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $ 49,000 $ 64,700 Processing costs $ 44,900 $ 44,900 Equipment rental $ 15,500 $ 15,500 Occupancy costs $ 17,400 $ 26,100 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Garrison_16e_Rechecks_2019_10_10 Multiple Choice $126,800 $(24,400) $151,200 $(139,000)
Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $ 49,000 $ 64,700 Processing costs $ 44,900 $ 44,900 Equipment rental $ 15,500 $ 15,500 Occupancy costs $ 17,400 $ 26,100 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Garrison_16e_Rechecks_2019_10_10 Multiple Choice $126,800 $(24,400) $151,200 $(139,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
| Alternative A | Alternative B | ||||
| Materials costs | $ | 49,000 | $ | 64,700 | |
| $ | 44,900 | $ | 44,900 | ||
| Equipment rental | $ | 15,500 | $ | 15,500 | |
| Occupancy costs | $ | 17,400 | $ | 26,100 | |
What is the financial advantage (disadvantage) of Alternative B over Alternative A?
Garrison_16e_Rechecks_2019_10_10
Multiple Choice
-
$126,800
-
$(24,400)
-
$151,200
-
$(139,000)
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