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Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 89,000
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:
Alternative Q | Alternative R | |
---|---|---|
Supplies costs | $ 89,000 | $ 89,000 |
Power costs | $ 46,000 | $ 44,600 |
Inspection costs | $ 43,000 | $ 44,600 |
Assembly costs | $ 53,000 | $ 53,000 |
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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