Jimbob Company Has Two Business Alternatives - a & B

question 87

Multiple Choice

Jimbob Company has two business alternatives - A & B with different total annual costs as 72) set out below: $$\begin{array} { | l | l | l | } \hline \text { Total annual costs: } & A & B \\\hline \text { Advertising } & \$ 32,000 & \$ 31,000 \\\hline \text { Other marketing costs } & \$ 18,000 & \$ 12,000 \\\hline \text { Other expenses } & \$ 30,000 & \$ 35,000 \\\hline\end{array}$$ Additionally, if alternative B is chosen the business will have to use some space for its own purposes that are currently being rented to an outside business for $5,000 per year. What are the total differential costs between the two alternatives?

• A)$7,000.
• B)$5,000.
• C)$2,000.
• D)$3,000.

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Definitions:

Core Value Studies

The examination of fundamental beliefs or principles that are shared by members of a group, society, or organization.

Cultural Ideals

The values, beliefs, and practices considered desirable or exemplary within a culture.

Psychologically Healthy

Pertaining to a state of mental well-being in which an individual realizes their own abilities, can handle normal stresses of life, can work productively, and is able to contribute to their community.

Ethnocentric

The belief in the inherent superiority of one's own ethnic group or culture, often at the expense of understanding or respecting other cultures.