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A company is considering two alternatives with the following costs: Alternative 1Alternative 2Material costs$87,000$87,000Utilities costs$45,000$44,100Review costs$41,000$44,100Direct labor costs$51,000$51,000 Identify the costs that are relevant and
A company is considering two alternatives with the following costs:
Alternative 1Alternative 2Material costs$87,000$87,000Utilities costs$45,000$44,100Review costs$41,000$44,100Direct labor costs$51,000$51,000
Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives.Calculate the differential cost between the alternatives.
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