Q1) Saalfrank Corp. is thinking of two alternatives which are code-named M and N. Costs associated with alternatives are given 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 appropriate and which are not appropriate in choice between these two alternatives?
What is differential cost between two alternatives?