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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?

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TomShelby

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:

[tex]\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][/tex]

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