Cardon, Inc. is considering two options, X and Y. Costs associated with each option are listed below:

	Option X				Option Y
Supplies costs	$	66,000			$	66,000
Power costs	$	30,500			$	29,600
Inspection costs	$	19,000			$	29,600
Assembly costs	$	34,000			$	34,000

Required:

a. Which costs are relevant and which are not relevant in the choice between these two options?

b. What is the differential cost between the two options?

		relevant or not relevant
a.	Supplies costs
	Power costs
	Inspection costs
	Assembly costs
b.	Differential cost