Answer:
$16,000
Explanation:
Beginning inventory is $5,000
Net purchases is $20,000
Ending inventory is $9,000
Therefore the cost of goods sold can be calculated as follows
= (5,000+20,000)-9,000
= 25,000-9,000
= 16,000
Hence the cost of goods sold is $16,000
Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its current level of 0.5 to 0.55 in 30 days. Denver Financial seeks to capitalize on this potential opportunity. Suppose that Denver Financial begins by borrowing $30,000,000 and converting it to New Zealand dollars (NZ$). The following table shows the short-term interest rates (annualized) in the interbank market.
Currency Lending Rate Borrowing rate
(Adjusted for 30-day period) (Adjusted for 30-day period)
U.S. Dollars 6.62% 7.10%
New Zealand Dollars (NZ$) 6.38% 6.86%
Suppose that Denver Financial takes its NZ$60,000,000.00 and invests it. Denver Financial can earn a 0.0053 percent return after 30-days. Hint: Assume 360 days in a year At the end of 30-days, Denver Financial will have a total of NZ:___________(New Zealand dollars) from the investment.
a. $54287100
b. $42223300
c. $60319000
d. $48255200
Answer:
c. $60319000
Explanation:
My actual calculation was not exactly that number, it was NZ$60,318,000, but it is the closest option. You calculate it by multiplying the present value x (1 + interest rate) = $60,000,000 x (1 + 0.0053) = $60,000,000 x 1.0053 = $60,318,000
The question only asks to calculate the interest in NZ$, not to convert them to US$.
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet.
She has studied three locations. Each would have the same labor and materials costs (food, serving
containers, napkins, etc.) of $1.76 per sandwich. Sandwiches sell for $2.65 each in all locations.
Rent and equipment costs would be $5,000 per month for location A, $5,500 per month for location B, and $5,800 per month for location C.
a. Determine the volume necessary at each location to realize a monthly profit of $10,000.
b. If expected sales at A, B, and C are 21,000 per month, 22,000 per month, and 23,000 per
month, respectively, which location would yield the greatest profits?
Answer:
Genuine Subs, Inc.
a. Volume necessary at each location to realize a monthly profit of $10,000:
Locations A B C
Sales volume = 16,854 17,416 17,753
b. Location C yields the greatest profits.
Explanation:
a) Data and Calculations:
Locations A B C
Sales per unit $2.65 $2.65 $2.65
Variable cost 1.76 1.76 1.76
Contribution $0.89 $0.89 $0.89
Fixed costs:
Rent & equipment
cost $5,000 $5,500 $5,800
Target profit = 10,000 10,000 10,000
Sales volume = (Fixed cost + Target profit)/Contribution per unit
= $15,000 $15,500 $15,800
Contribution $0.89 $0.89 $0.89
Sales volume = 16,854 17,416 17,753
Location yielding the greatest profits:
Locations A B C
Contribution $0.89 $0.89 $0.89
Expected sales units 21,000 22,000 23,000
Contribution margin $18,690 $19,580 $20,400
Rent & equipment
cost $5,000 $5,500 $5,800
Profits $13,690 $14,080 $14,600
An investor owns 60 shares of common stock of a company issuing new shares in a rights offering. The stock trades at $12 per share. The company requires that investors must submit 9 rights plus $10 to purchase a new share of stock. Fractional shares automatically become whole shares. How many additional shares may the investor purchase and what is the amount of money that needs to be paid for the new shares
Answer:
7 shares and $70
Explanation:
The computation is shown below:
The additional shares is
= 60 shares ÷ 9
= 7 shares
And, the amount of money that have to be paid is
= Additional shares × purchase price
= 7 × $10
= $70
Therefore the same would be considered relevant
how do I create a marketing plan
Why do managers suggest that ignoring all cash flows following the assigned payback period is not a major flaw of the payback method of capital budgeting analysis? Payback is never used in real practice so it makes no difference how academics apply the method in their studies If the cash flows after the required payback period are significant, managers will use their discretion to override the payback rule. All cash flows after the first two years are highly inaccurate so including them lessens the reliability of the resulting decision. All cash flows after the assigned payback period are relatively worthless in today’s dollars so ignoring them has no consequence. The results of including the cash flows after the required payback period rarely have any effect on the accept/reject decision.v
Answer:
The answer is "choice B".
Explanation:
Please find the numbering of the question in the attachment file.
Whenever the cash flows become substantial after the required period, managers would use their option to surpass the pay-back rule, as well as the managers, recommend that ignoring all investment returns after a period of pay-back would not be an important component in the capital-budget evaluation repayment process, that's why the choice "B" is correct.
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A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below:
For in-house manufacturing:
Annual fixed cost = $85,000
Variable cost per part = $130
For purchasing from supplier:
Purchase price per part = $140
If demand is forecast to be 2,500 parts, should the firm make the part in-house or purchase it from a supplier? Round your answer to the nearest whole number.
Break-Even Quantity:
parts
The best decision is to
-Select-
.
The marketing department forecasts that the upcoming year’s demand will be 2,500 parts. A new supplier offers to make the parts for $138 each. Should the company accept the offer? Round your answer to the nearest whole number.
New Break-Even Quantity:
parts
The best decision is to
-Select-
.
What is the maximum
Hey! Here's the answer.
Heinz Company began operations on January 1, 2017, and uses the first in, first out (FIFO) method in costing its raw material inventory. Management is contemplating a change to the last in, first out (LIFO) method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Final Inventory 2017 2018 FIFO $640,000 $ 712,000 LIFO $560,000 $636,000 Net Income (computed under the FIFO method) $980,000 $1,030,000 Based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of ________. Group of answer choices $1,070,000 $1,030,000 $954,000 $950,000
Answer:
C. $954,000
Explanation:
Final inventory FIFO LIFO Difference
2017 640,000 560,000 80,000
2018 712,000 636,000 76,000
Note: When method is changed to LIFO in 2018, it will effect ending inventory of 2018 only.
Net income as per FIFO $1,030,000
Decrease in income due to decrease -$76,000
in the ending inventory as per LIFO
Net income as per LIFO $954,000
So, a change to the LIFO method in 2018 would result in net income for 2018 of $954,000
Jennifer has recently found a new job at a local architectural firm. They have offered her a chance to invest money for her retirement. For every 6 percent Jennifer invests from her salary, her company will fund 3 percent. What type of investment does this describe?
A.
money market mutual fund
B.
certificate of deposit
C.
bond
D.
401k
The answer is D.) 401k
Don't worry about the picture it tells you the correct answer
Hope this helps
401k is the investment option offered by Jenifer’s employer to her.
What is a 401K plan?Popularly known as an employer-sponsored retirement plan, a 401(K) plan allows certain eligible employees to make tax-deferred contributions from their pay or compensation, based on pre-established criteria. A 401(k) match is money put into your account by your employer. Up to a predetermined percentage of your pay, your company will match all or a portion of every dollar you put into your 401(k). Employer matching is a crucial perk of your employment that, over time, can greatly increase your 401(k) retirement savings. The employer contribution is pre-tax, whereas the employee contribution is post-tax.
Employers who offer 401(K) plans are also allowed to include a profit-sharing component in the plan as well as make matching or non-elective payments to the plan on behalf of eligible employees.
The typical 401(k) plan is very versatile and provides close to 25 distinct investment possibilities. The fund fees, which were formerly a significant problem, have been steadily declining, which lessens the strain on employees' retirement funds. In fact, the 401(k) contributions that invested a sizeable sum in these index funds as low cost and low risk methods of engaging in the equity markets are responsible for the index funds' quick surge in popularity in the US, including Vanguard and Blackrock. Employees have access to a low-cost way to invest for the future, and since 401(k) contribution limits are inflation-indexed, participants can gradually make higher contributions.
Employers most frequently match worker contributions up to a percentage of annual income. There are a number possible ways to implement this constraint. Your employer has the option of matching all of your contributions up to a certain percentage of your overall compensation or only a portion of them. The latter circumstance necessitates you to make additional contributions to your plan in order to earn the maximum match, even while the overall cap on employer contributions stays the same.
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Denton and Carlo were employed at an appliance plant. Their job required them to do occasional maintenance work while standing on a wire mesh twenty feet above the plant floor. Other employees had fallen through the mesh, and one was killed by the fall. When Denton and Carlo were asked by their supervisor to do work that would likely require them to walk on the mesh, they refused due to their fear of bodily harm or death. Because of their refusal to do the requested work, the two employees were fired. Was their dis-charge wrongful
Answer:
This is wrongful discharge.
Explanation:
Under the Occupational Safety and Health Act, an employer cannot discharge an employee who files a complaint or who, in good faith, refuses to work in a high-risk area if bodily harm or death might result. Because a previous employee had died because of the high risk maintenance, Darla and Piper were acting in good faith.
You oversee the $250 petty cash for your company. When an employee needs a special item that is not in inventory, you take money from petty cash to purchase that item.
One day, you are short on cash for lunch. You decide to borrow $10 each day for the next 3 days until payday for a total of $30 from petty cash. After payday, you do not have enough to repay petty cash, so you decide to record a cash short/over expense of $30.
Respond to the following in a minimum of 175 words:
Since this is the first time you have ever done this, is this a problem?
If so, what steps should be taken to fix this problem? If not, why not?
Answer:
Since this is the first time you have ever done this, is this a problem?
Of course this is a problem, you stole money. Stealing money is not right and it is a problem. If someone finds out, you will lose your job. legally, you could also be prosecuted, but the amount is very little. Another problem is that if you are able to go unpunished and no one finds out, this behavior will continue until you cannot hide it anymore. By then , the amount might be larger, not just a few dollars, and you will be in deep trouble.
If so, what steps should be taken to fix this problem? If not, why not?
Pay back the money you took. Simple as that. Sometimes, doing the correct thing is not difficult. Do not spend money on unnecessary things and pay the $30. Do it before this becomes a bad habit and you get into serious trouble that seriously damage your career. No company will hire someone fired for stealing money form their previous employer.
0.0004×0.81/0.0027×0.004
Answer:
0.00048
Explanation:
I hope this helped
EK Chemical Company sells a specialty chemical in packages marked 83 g. In reality, EK has set the process mean at 84.0 g, and the process currently has a standard deviation of 1.85 g. Suppose the customer will accept anywhere from 78 to 88 g, as long as the average package has at least 83 g a. The process capability index for the current manufacturing process is___________(Enter your response rounded to three decimal places.)
Answer:
0.7207
Explanation:
Mean μ = 84g
SD σ = 1.85g
Upper specification limit (USL) = 88g
Lower specification limit (LSL) = 78g
Cpk = Min[USL - μ/3σ, μ-LSL/3σ]
Cpk = Min[88 - 84/3*1.85, 84-78/3*1.85]
Cpk = Min[4/5.55, 6/5.55]
Cpk = Min[0.7207, 1.0811]
Cpk = 0.7207
So, the process capability index for the current manufacturing process is 0.7207
Karev Company started Year 2 with a $500 balance in its Cash account, a $500 balance in its Supplies account and a $1,000 balance in its common stock account. During Year 2 the company experienced the following events. (1) Paid $334 cash to purchase supplies (2) Physical count revealed $211 of supplies on hand at the end of Year 2 Based on this information the amount of supplies reported on the Year 2 Balance Sheet is $_______________
Answer: $211
Explanation:
Based on the information given in the question, the amount of supplies reported on the Year 2 Balance Sheet will be $211.
The answer is $211 because that is the actual inventory that was given in the question and therefore should be the value that should be reported on the Year 2 balance sheet.
Elm Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $420,000 $350,000 Work in process inventory 400,000 275,000 Finished goods inventory 200,000 125,000 During 2020, $750,000 of raw materials were purchased, direct labor costs amounted to $560,000, and manufacturing overhead incurred was $630,000. The total raw materials available for use to assign to production during 2020 for Elm Company is Group of answer choices
Answer:
$680,000
Explanation:
The computation of the raw material allocated to production is shown below:
As we know that
Raw materials used in production = Beginning raw materials + Purchase of raw materials - Ending raw materials
= $350,000 + $750,000 - $420,000
= $680,000
On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount, $280000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. The present value of $280000 at 9% for three years is $216216. What amount of interest income should Ms. Price recognize in 2020
Answer:
$19,459.44
Explanation
Interest expense in 2020 = Loan amount * Prevailing rate of interest
Interest expense in 2020 = $216216 * 9%
Interest expense in 2020 = $19,459.44
So, $19,459.44 is the amount of interest income that Ms. Price should recognize in 2020
You purchased eight put option contracts with a strike price of $30 and a premium of $1.10. What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $26.50 a share
Answer:
$23120
Explanation:
The computation of the total net amount received is shown below:
Total Premium Paid
= 800 Option × $1.10
= $880
And,
Amount Received is
= 800 Option × $30
= $24000
So, Net Amount Received is
= $24000 - $880
= $23120
the true statement from the list below, regarding the Contribution Format Income statement. Multiple Choice The Contribution Format Income Statement could be prepared by someone external to the company just by using the reported GAAP Traditional Income Statement. The Contribution Format income statement is utilized only for external reporting purposes. The Contribution Format Income Statement is utilized for internal decisionmaking purposes. The format of the Contribution Format Income statement begins as: Sales minus Cost of Goods Sold equals Contribution Margin.
Answer:
The Contribution Format Income Statement is utilized for internal decision-making purposes.
Explanation:
The contribution format income statement is a most and useful tool for the planning and decision-making as it represents the revenue that is produced after subtracting the variable and fixed expenses. So it would be utilized for the decision-making motive for internal.
Assume Concord Corporation has the following reported amounts: Sales revenue $1,000,000, Sales returns and allowances $29,000, Cost of goods sold $657,367, and Operating expenses $215,600. (a) Compute net sales. Net sales $enter net sales in dollars (b) Compute gross profit. Gross profit $enter gross profit in dollars (c) Compute income from operations. Income from operations $enter Income from operations in dollars (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.)
Answer:
Concord Corporation
(a) Net sales $971,000
(b) Gross profit $313,633
(c) Income from operations $98,033
(d) Gross profit rate = 313,633/971,000 * 100
= 32.3
Explanation:
a) Data and Calculations:
Sales revenue $1,000,000
Sales returns and allowances $29,000
Net Sales $971,000
Cost of goods sold $657,367
Gross profit 313,633
Operating expenses $215,600
Income from operations $98,033
If cash is received from customers in payment for services that have not yet been performed, the business would record the cash receipt as: Multiple Choice A debit to an unearned revenue account. A debit to a prepaid expense account. A credit to an unearned revenue account. A credit to a prepaid expense account. A credit to accounts payable.
Answer:
A credit to an unearned revenue account
Explanation:
Ordinarily, when cash is received from a person whereas service has not been performed, the accounting entry is to debit cash account and credit the unearned revenue account.
Here, the receipt of cash means that revenue was realized however, the service expected have not been performed hence necessitated crediting the unearned revenue account and a debit to the asset cash for the amount received.
Item9 Time Remaining 34 minutes 55 seconds00:34:55 Item 9 Time Remaining 34 minutes 55 seconds00:34:55 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 13,900 units 15,000 units Direct materials $ 813,150 $ 877,500 Direct labor $ 215,450 $ 232,500 Manufacturing overhead $ 1,011,500 $ 1,024,150 The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice
Answer:
$85.50
Explanation:
Particulars Amount Amount Difference
Direct materials $813,150 $877,500 $74,350
Direct labor $215,450 $232,500 $17,050
Manufacturing OH $1,011,500 $1,024,150 $12,650
T.V. Overheads 2040100 2134150 $94,050
Production Volume 13,900 15,000 1,100
Variable Cost per unit $85.50
Chapter 5 Questions Answer the following items and upload your responses to the appropriate drop box by the due date. 1. Orange Sun Manufacturing, Inc. produces high quality sunglasses which are marketed and sold under various brand names. The production engineers have determined that each line employee accounts for approximately 10 units per labor hour. If employees work an average of 2000 hours per year, and projected sales for 2017 are 9.5 million units, how many line employees will we need for the coming year
Answer:
475 employees
Explanation:
Calculation for how many line employees will we need for the coming year
Line employees needed =9,500,000/(10 units x 2,000 hours let year )
Line employees needed= 9,500,000/20,000
Line employees needed= 475 employees
Therefore how many line employees will we need for the coming year is 475 employees
Stationery Supplies is considering installing an inventory control system in its store in Provo, Utah. The store carries about 1,400 different inventory items and has annual gross sales of about $80,000. The inventory control system would cost $12,500 to install and about $2,000 per year in additional supplies, time, and maintenance. If the savings to the store from the system can be represented as a fixed percentage of annual sales, what would that p
Answer:
5.63%
Explanation:
Missing word "have to be in order for the system to pay for itself in five years or less?"
Total cost = Installation cost + Holding cost
Total cost = 12500 + (2000*5)
Total cost = $22,500
Sales * Saving rate * Number of years = Total cost
80,000 * S * 5 = $22,500
S = $22,500/$400,000
S = 0.05625
S = 5.63%
Thus, it is required for the company to have 5.62% of saving rate per year to pay for the system.
Nick and Beth run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Nick 8 hours to prepare food for an event and 4 hours of effort to get each new client. For Beth, it takes 12 hours to prepare food for an event and 3 hours to get a new client.
1. Who has an absolute advantage in food preparation?
2. Who has a comparative advantage in food preparation?
Suppose that initially, Nick and Beth are both splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by __?__.
The second part threw me off and I got confused. I put up the entire problem just to see if i answered it correctly or not to see whether that was what threw me off or not. Thanks in advance! :)
Answer:
NICK
NICK
2
Explanation:
A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Nick prepares food in 8 hours while Beth produces the food in 12 hours. ick thus has an absolute advantage in food preparation because he produces food in less time
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Opportunity cost of Nick in food preparation = 4/8 = 0.5 hours
Opportunity cost of Beth in food preparation = 3 / 12 = 0.25 hours
Nick has a comparative advantage in food preparation
The information below pertains to Teal Company for 2021.
Net income for the year $1,150,000
6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,040,000
6% convertible, cumulative preferred stock,
$100 par value; each share is convertible into 3 shares of common stock 4,130,000
Common stock, $10 par value 6,030,000
Tax rate for 2021 20%
Average market price of common stock $25 per share
There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 73,600 shares of common stock at $20 per share.
Instructions
(a) Compute basic earnings per share for 2021.
(b) Compute diluted earnings per share for 2021.
Answer:
a. Basic EPS = (Net Income - Preferred dividend) / Number of shares for common stock
Basic EPS = ($1,150,000 - (4,130,000*6%) / (6,030,000/$10)
Basic EPS = ($1,150,000 - $247,800) / 603,000
Basic EPS = $902,200 / 603,000
Basic EPS = $1.50
b. Diluted EPS = (Net Income - Preferred dividend) + Interest savings (net of tax) / (Average common shares + Potentially diluted common shares)
Diluted EPS = ($1,150,000 - (4,130,000*6%) + (2,040,000*6%*(1-0.2) / (6,030,000/$10) + (2,040,000/1000 * 30) + (25-20/25 * 73,600)
Diluted EPS = $902200 + $97920 / 603,000 + 61,200 + 14,720
Diluted EPS = $1,000,120 / 678,920
Diluted EPS = $1.47
Gelb Company currently manufactures 56,500 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $85,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 56,500 units and buying 56,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer:
Incremental Costs to Make
Variable Cost Per Unit = $4.05 = 56,500 units*$4.05 = $228,825
Fixed Manufacturing Costs = $85,000
Total Incremental Costs to Make $313,825
Incremental Costs to Buy
Purchase Price Per Unit = $3.50 = 56,500 unit*$3.50 = $197,750
Total Incremental Cost to Buy = $197,750
The company should buy the component from outside supplier as it results in a lower total incremental cost of $197,750
Mortensen Industries, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records: Total equivalent units of materials: 5,000 Total equivalent units of conversion: 4,400 Units started and completed during the period: 3,500 On the basis of this information, the ending work-in-process inventory's stage of completion is: Multiple Choice 60%. 40%. 80%. 70%. some other percentage not listed.
Answer: 60%
Explanation:
Find the ending work in process.
Materials are complete at inception so the Equivalent units of Materials represent the total units.
Ending WIP will therefore be:
= Materials EUP - Units started and completed
= 5,000 - 3,500
= 1,500 units
Stage of completion is based on Conversion.
Conversion EUP = Total started and completed + (x% * Closing WIP)
4,400 = 3,500 + (x% * 1,500)
4,400 = 3,500 + 15x
15x = 4,400 - 3,500
15x = 900
x = 900/15
x = 60%
Conversion is 60% complete so this is the stage of completion.
A yield can be paid in form of what
Answer:
Interest and dividends.
Explanation:
Rate of return can be defined as the percentage of an interest or dividends earned on an amount of money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
A yield can be defined as an amount of money gained from an investment.
Hence, a yield can be paid in form of interest and dividends.
Yolanda and Mack are negotiating a contract deal for sale of goods. Yolanda offers Mack $2 per pound for Mack’s peanuts. Mack wants to sell them for $2.50. Under UCC, what happens when Mack asks for the higher amount, assuming both parties are merchants?
Mack’s offer becomes a counteroffer in this transaction, and Yolanda is the offeree.
Mack’s change of terms is incorporated into the standing deal.
Mack cannot make a new offer under UCC – he can only accept or reject Yolanda’s standing offer.
Mack’s offer negates the terms of the contract, and a new contract must be drawn up when both parties can meet.
Answer: D
Explanation:
Whats the difference between a debit card and a credit card ? ( PLEASE GIVE LARGE EXPLANATION )
Answer:
The main difference between a debit card and a credit card is that a debit card withdrawals money from your current account balance while a credit card allows you to borrow money that is to be paid back in the future. Immediate vs. Future Payment
Explanation:
Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternative AAlternative B Materials costs$26,000 $60,000 Processing costs$32,000 $32,000 Equipment rental$10,600 $28,300 Occupancy costs$19,300 $27,200 What is the differential cost of Alternative B over Alternative A, including all of the relevant costs
Answer:
See below
Explanation:
Alternative A. Alternative B
Material cost $26,000 $60,000
Processing costs $32,000 $32,000
Equipment rental $10,600 $28,300
Occupancy Costs $19,300 $27,200
Total expenses $87,900 $147,500
Differential cost would be;
= Material cost $34,000 + Processing cost $0 + Equipment rental $17,700 + Occupancy costs $7,900
= $59,600