Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives...
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Accounting
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
(Click to select)RelevantNot relevant
Power costs
(Click to select)RelevantNot relevant
Inspection costs
(Click to select)Not relevantRelevant
Assembly costs
(Click to select)Not relevantRelevant
b.
What is the differential cost between Alternative M and Alternative N?(Negative amount should be indicated by a minus sign. Omit the "$" signs in your response.)
Differential cost
$
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