Differential cost between the two alternatives.
Saalfrank Corp. is considering two alternatives that are code-named M and N. Costs associated with the alternatives are listed below:
|
|
Alternative M
|
Alternative N
|
|
Supplies cost
|
$43,000
|
$53,000
|
|
Assembly cost
|
$43,000
|
$56,000
|
|
Power cost
|
$26,000
|
$26,000
|
|
Inspection cost
|
$19,000
|
$26,000
|
Which costs are relevant and which are not relevant in the choice between these two alternatives?
What is the differential cost between the two alternatives?