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Costs associated with two alternatives, code named Q and R, being considered by Corniel Corporation are listed below: |
| Alternative Q | Alternative R | |||
| Supplies costs | $ | 49,500 | $ | 52,000 |
| Power costs | $ | 33,000 | $ | 33,000 |
| Inspection costs | $ | 13,000 | $ | 20,000 |
| Assembly costs | $ | 26,000 | $ | 15,000 |
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| Required: |
| a. |
Which costs are relevant and which are not relevant in the choice between these two alternatives? |
| Supplies costs | (Click to select) Not relevant Relevant |
| Power costs | (Click to select) Relevant Not relevant |
| Inspection costs | (Click to select) Relevant Not relevant |
| Assembly costs | (Click to select) Relevant Not relevant |
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| b. |
What is the differential cost of Alternative R over Alternative Q? (Negative amount should be indicated by a minus sign. Omit the “$” signs in your response.) |
| Differential cost | $ |