Find the differential cost between the two alternatives

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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?

Reference no: EM1311070

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