Question
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed...
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:
|
Alternative Q |
Alternative R |
||||||
|
Supplies costs |
$ |
65,000 |
$ |
65,000 |
|||
|
Power costs |
$ |
30,000 |
$ |
29,000 |
|||
|
Inspection costs |
$ |
18,000 |
$ |
29,000 |
|||
|
Assembly costs |
$ |
33,000 |
$ |
33,000 |
|||
a. Which costs are relevant and which are not relevant in the choice between these two alternatives?
b. What is the differential cost between the two alternatives?
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