Answer:
$(24,500)
Explanation:
Considering Alternative A
Given the following associated cost;
Materials costs = $44,000
Processing costs = $40,600
Equipment rental = $14,200
Occupancy costs = $16,300
Total cost = $44,000 + $40,600 + $14,200 + $16,300
= $115,100
Considering Alternative B
Given the following associated cost;
Materials costs = $60,800
Processing costs = $40,600
Equipment rental = $14,200
Occupancy costs = $24,000
Total cost = $60,800 + $40,600 + $14,200 + $24,000
= $139,600
Financial advantage (disadvantage) of Alternative B over Alternative A
= $115,100 - $139,600
= $(24,500)
