Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car 40 years ago for $6,000. Cybil is either going to sell the car for $8,000 or have it restored and sell it for $22,000. The restoration will cost $6,000. Cybil would be better off by:

$2,000 to have the vehicle restored$6,000 to have the vehicle restored$8,000 to have the vehicle restored$10,000 to have the vehicle restored

9)

	Alternative A	Alternative B
Materials costs	$33,000	$53,000
Processing costs	$38,000	$57,000
Equipment rental	$11,000	$11,000
Occupancy costs	$18,000	$29,000

What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?

$150,000$100,000$125,000$50,000

10)

Nicklin Corporation is considering two alternatives that are, code-named M and N. Costs associated with the alternatives are listed below:

	Alternative M	Alternative N
Supplies costs	$74,000	$65,000
Assembly costs	$46,000	$46,000
Power costs	$26,000	$39,500
Inspection costs	$39,000	$28,000

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?