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2) IBM made codes-named L and M as listed below: Supplies costs Power costs Inspection costs Assembly costs Alternative L Alternative M $65,000 $65,000 $30,000

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2) IBM made codes-named L and M as listed below: Supplies costs Power costs Inspection costs Assembly costs Alternative L Alternative M $65,000 $65,000 $30,000 $29,000 $18,000 S29,000 $33,000 $33,000 Required: 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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