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San Juan, Inc. is considering two alternatives: A and B. The costs associated with the alternatives are listed below:
| | Alternative A | | Alternative B |
| Material costs | $ | 35,000 | | | $ | 60,000 | |
| Processing costs | | 40,000 | | | | 60,000 | |
| Building costs | | 13,100 | | | | 30,000 | |
| Equipment rental | | 20,100 | | | | 20,100 | |
| |
If only the differential costs of the two decisions are considered, the total cost of Alternative B is
$139,150.
$61,900.
$108,200.
$170,100.
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