Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
Alternative A Alternative B
Materials costs
$ 40,000 $ 56,000
Processing costs
$ 37,000 $ 37,000
Equipment rental
$ 13,000 $ 13,000
Occupancy costs
$ 15,000 $ 22,000
What is the financial advantage (disadvantage) of Alternative B over Alternative A?
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