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Alborosie
3 years ago
10

Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternati

ve AAlternative B Materials costs$24,000 $56,000 Processing costs$30,000 $30,000 Equipment rental$10,200 $28,100 Occupancy costs$19,100 $26,800 What is the differential cost of Alternative B over Alternative A, including all of the relevant costs
Business
1 answer:
allochka39001 [22]3 years ago
8 0

Answer: $57,600

Explanation:

The differential Cost of Alternative B over Alternative A can be calculated by subtracting the various costs of Alternative B from A and then summing them up.

Materials

= Alternative B costs - Alternative A Costs

= 56,000 - 24,000

= $32,000

Processing Costs

Alternative B costs - Alternative A Costs

= 30,000 - 30,000

= $0

Equipment Rental

= Alternative B costs - Alternative A Costs

= 28,100 - 10,200

= $17,900

Occupancy Costs

= Alternative B costs - Alternative A Costs

= 26,800 - 19,100

= $7,700

Adding them all up we get,

= 7,700 + 17,900 + 32,000

= $57,600

$57,600 is the differential cost of Alternative B over A.

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2 years ago
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natima [27]

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  • Greater than

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To make use of conditional formatting, follow the highlighted steps

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3 years ago
Question 1-12
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5 0
2 years ago
Poe Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first
sergey [27]

Answer:

$23,773.65

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Net present value is the present value of after tax cash flows from an investment less the amount invested

NPV can be calculated using a financial calculator :

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Cash flow in year 3 and 4 = $30,000.

I = 10%

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To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
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