Pippa earns $68,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the BBA program at Yorkville University. If accepted, she will resign and move to Halifax, Nova Scotia. Pippa has assembled the following data to make the decision:
Pippa's current annual salary (2% raise expected next year) $68,000
Annual tuition and fees 14,000
Annual book and supply expense 3,000
Monthly living expenses in Mexico City 800
Monthly living expenses in Halifax 1,600
Monthly auto expenses in Mexico City 350
Monthly auto expenses in Halifax 350
Cost of two business suits purchased just prior to resigning 600
Moving expenses 5,500
Calculate the following in the context of Pippa's decision:
Total sunk costs (if any)
Total differential or incremental costs (if any)
Total opportunity costs (if any)
What is your best estimate of the total cost to Pippa's of earning a BBA degree if it will take her 24 months to complete the program?