Question
Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives are listed below: Alternative M Alternative N Supplies costs $
Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives are listed below:
| Alternative M | Alternative N | |||
| Supplies costs | $ | 62,000 | $ | 46,000 |
| Power costs | $ | 27,000 | $ | 27,000 |
| Inspection costs | $ | 13,000 | $ | 19,000 |
| Assembly costs | $ | 20,000 | $ | 13,000 |
|
| ||||
| 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 Alternative M and Alternative N? (Negative amount should be indicated by a minus sign. |
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The Corporate Culture Audit
Authors: Nigel Bristow, Sarah J. Sandberg
1st Edition
095597075X, 978-0955970757
