San Juan, Inc. is considering two alternatives: A and B. The costs associated with the alternatives are listed below: Alternative A Alternative BMaterial costs$35,000 $57,000 Processing costs 36,000 57,000 Building costs 12,000 28,000 Equipment rental 19,000 19,000 If only the differential costs of the two decisions are considered, the total differential costs of Alternative B is:
A. $102,000.
B. $59,000.
C. $161,000.
D. $131,500.
Answer: B
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