10 May WHAT IS YOUR BEST ESTIMATE OF THE TOTAL COST TO PIPPA’S OF EARNING A BBA DEGREE IF IT WILL TAKE HER 24 MONTHS TO COMPLETE THE PROGRAM?
Pippa earns $68 000 annually as a marketing specialist in Mexico City Mexico. She has applied for admission to the BBA program at Yorkville University. If accepted she will resign and move to Halifax Nova Scotia. Pippa has assembled the following data to make the decision:Pippa’s current annual salary (2% raise expected next year)$68 000Annual tuition and fees14 000Annual book and supply expense3 000Monthly living expenses in Mexico City800Monthly living expenses in Halifax1 600Monthly auto expenses in Mexico City350Monthly auto expenses in Halifax350Cost of two business suits purchased just prior to resigning600Moving expenses5 500Calculate the following in the context of Pippa’s decision:Total sunk costs (if any)Total differential or incremental costs (if any)Total opportunity costs (if any)What is your best estimate of the total cost to Pippa’s of earning a BBA degree if it will take her 24 months to complete the program?
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