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

01:20:42

below:

Supplies costs

Assembly costs

Power costs

Inspection costs

Alternative M

Alternative N

$ 62,000

$ 55,000

$ 36,000

36,000

$ 16,000

$

24,500

$ 29,000

$ 18,000

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 costs

a. Assembly costs

a. Power costs

1. Inspection costs
2. differential coat