Question

Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below. Alternative X Alternative Y Materials costs $ 43,000 $ 62,000 Processing costs $ 47,200 $ 47,200 Equipment rental $ 17,800 $ 17,800 Occupancy costs $ 16,800 $ 25,100What is the financial advantage (disadvantage) of Alternative Y over Alternative X?

Answer 1

Answer:

It will be a financial disadvantage of Alternative Y over Alternative X

which menas, alternative X is better as their work is lower.

Explanation:

$\left[\begin{array}{cccc}&X&Y& Differential\\ Material cost&-43000&-62000&-19000\\ Processing cost&-47200&-47200&0\\ Equipment rent&-17800&-17800&0\\ Occupancy cost&-16800&-25100&-8300\\&&&0\\ Total&-16800&-25100&-8300\\\end{array}\right]$