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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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