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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 $ 79,000
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:
Alternative Q | Alternative R | ||||||
Supplies costs | $ | 79,000 | $ | 79,000 | |||
Power costs | $ | 36,600 | $ | 35,600 | |||
Inspection costs | $ | 32,000 | $ | 35,600 | |||
Assembly costs | $ | 48,000 | $ | 48,000 | |||
Required:
a. What is the differential cost between the two alternatives?
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