Reference no: EM132761771
Jaclyn works as a Marketing Consultant in Tampa Bay, Florida. She has applied for admission to the MBA program at Cape Breton University. If accepted, Jaclyn will resign from her job in Tampa Bay, Florida and move to Sydney, Nova Scotia.
Jaclyn has assembled the following data to help her make the decision:
Jaclyn's annual salary $68,000
Annual Tuition and fees $14,000
Annual book and school supplies expense 3,000
Monthly living expenses in Tampa Bay 800
Monthly living expenses in Sydney 1,600
Monthly auto expenses in Tampa Bay 350
Monthly auto expenses in Sydney 350
Cost of two business suits (clothing) purchased just prior to resigning 600
Moving Expenses 5,500
Required:
Problem A) Calculate the following in the context of Jaclyn's decision:
a. Total sunk costs (if any)
b. Total differential or incremental costs (if any)
c. Total opportunity costs (if any)