Nesmith corporation is considering two alternatives: a and b. costs associated with the alternatives are listed below: alternative a alternative b materials costs $27,000 $62,000 processing costs $33,000 $33,000 equipment rental $10,800 $28,400 occupancy costs $19,400 $27,400 what is the differential cost of alternative b over alternative a, including all of the relevant costs?

$60600.

Explanation:

Differential Costs:

Materials costs = $62,000 - $27,000

                          = $35,000

Processing costs = $33,000 - $33,000

                             = $0

Equipment rental =  $28,400 - $10,800

                             = $17,600

Occupancy costs = $27,400 - $19,400

                              = $8,000

Sum of all differential cost = $35,000 + $0 + $17,600 + $8,000

                                            = $60,600

Therefore, the differential cost of Alternative B over Alternative A, including all of the relevant costs is $60600.

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