Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative BMaterials costs$40,000 $56,000Processing costs$37,000 $37,000Equipment rental$13,000 $13,000Occupancy costs$15,000 $22,000What is the financial advantage (disadvantage) of Alternative B over Alternative A?
A. $23,000
B. $116,500
C. $105,000
D. $128,000
Answer: A
Business
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