What is the differential cost between the two alternatives

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Problem

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

                               Alternative Q       Alternative R
Supplies costs            $ 66,000             $ 66,000
Power costs               $ 30,500             $ 29,600
Inspection costs         $ 19,000             $ 29,600
Assembly costs          $ 34,000             $ 34,000

Task

Which costs are relevant and which are not relevant in the choice between these two alternatives? Get the instant assignment help.

Cost Item	Relevancy
Supplies costs	Not relevant
Power costs	Relevant
Inspection costs	Relevant
Assembly costs	Not relevant

What is the differential cost between the two alternatives?

Reference no: EM134007999

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