Find the total differential cost


Question: Haddix Inc. is considering two alternatives code-named Able and Baker. Costs associated with the two alternatives are listed below:

 

Able Alternative

Baker Alternative

Labor costs

$432,000

$458,000

Assembly costs

$247,000

$237,000

Power costs

$38,500

$30,000

Inspection costs

$12,500

$12,500

Required: Find the total differential cost between the two alternatives?

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Accounting Basics: Find the total differential cost
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