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Costs associated with two alternatives, code-named Q and R, being considered by Corniel Corporation are listed below: Alternative Q Alternative R Supplies costs $ 60,000
Costs associated with two alternatives, code-named Q and R, being considered by Corniel Corporation are listed below: |
Alternative Q | Alternative R | |||
Supplies costs | $ | 60,000 | $ | 54,000 |
Power costs | $ | 35,000 | $ | 35,000 |
Inspection costs | $ | 15,000 | $ | 23,000 |
Assembly costs | $ | 28,000 | $ | 17,000 |
Required: |
a. | Which costs are relevant and which are not relevant in the choice between these two alternatives? |
Supplies costs | (Click to select)RelevantNot relevant |
Power costs | (Click to select)RelevantNot relevant |
Inspection costs | (Click to select)RelevantNot relevant |
Assembly costs | (Click to select)RelevantNot relevant |
b. | What is the differential cost of Alternative R over Alternative Q? (Negative amount should be indicated by a minus sign. Omit the "$" signs in your response.) |
Differential cost | $ |
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