Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: What is the financial advantage (disadvantage) of Alternative B over Alternative A?
A) $109,100
B) $(21,700)
C) $130,800
D) $(119,950)

Question

Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:  What is the financial advantage (disadvantage) of Alternative B over Alternative A?
A) $109,100 
B) $(21,700) 
C) $130,800 
D) $(119,950)

Quizplus · Accepted Answer

To find the financial advantage (disadvantage) of Alternative B over Alternative A, we need to subtract the total cost of Alternative A from the total cost of Alternative B.

Total cost of Alternative A = $990,000
Total cost of Alternative B = $968,300

So, financial advantage (disadvantage) of Alternative B over Alternative A = Total cost of Alternative B - Total cost of Alternative A
= $968,300 - $990,000
= $(21,700)

Therefore, the best choice is Alternative B as it has a financial advantage of $21,700 over Alternative A.

Ouzts Corporation Is Considering Alternative a and Alternative B