Nicklin Corporation is considering two alternatives, code-named M and N, Costs associated with the alternatives are listed below: Alternative M Alternative N Supplies costs $ 65,000 $ 57,000 Power costs $ 38,000 $ 38,000 Inspection costs $ 18,000 $ 27,500 Assembly costs $ 31,000 $ 24,000 Required:
a.Which costs are relevant and which are not relevant in the choice between these two alternatives?
| Supplies costs |
|
| Power costs |
|
| Inspection costs |
|
| Assembly costs |
|
b.What is the differential cost between the two Alternative R over Alternative Q? (Negative amount should be indicated by a minus sign. Omit the "$" signs in your response.)