Costs associated with two alternatives, code-named Q and R, being considered by

Question

Costs associated with two alternatives, code-named Q and R, being considered by Corniel Corporation are listed below:

Which costs are relevant and which are not relevant in the choice between these two alternatives?

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.)

Alternative Q Alternative R   Supplies costs $ 77,000       $ 68,000         Power costs $ 49,000       $ 49,000         Inspection costs $ 29,000       $ 44,000         Assembly costs $ 42,000       $ 31,000      

Explanation / Answer

Which costs are relevant and which are not relevant in the choice between these two alternatives?

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.)

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