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?
$40,000
$149,600
$109,600
$136,200