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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 $ 65,000
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:
| Alternative Q |
| Alternative R | ||||
Supplies costs | $ | 65,000 |
|
| $ | 65,000 |
|
Power costs | $ | 30,000 |
|
| $ | 29,000 |
|
Inspection costs | $ | 18,000 |
|
| $ | 29,000 |
|
Assembly costs | $ | 33,000 |
|
| $ | 33,000 |
|
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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