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

Supplies costs

Assembly costs

Power costs

Inspection costs

Alternative M Alternative N

$ 60,000

$ 54,000

$ 35,000

$ 35,000

$ 15,000

$ 23,000

$ 28,000

$ 17,000

Required:

1. Which costs are relevant and which are not relevant in the choice between these two alternatives?
2. What is the differential cost between the two alternatives?

a supplies

a assembly costs

a power costs

a inspection costs

b differental costs