Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:
|
Alternative A |
Alternative B |
| Materials costs |
$37,000 |
$49,000 |
| Processing costs |
$43,000 |
$43,000 |
| Equipment rental |
$10,400 |
$28,200 |
| Occupancy costs |
$19,200 |
$29,400 |
What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?