Question: Costs associated with two alternatives, code-named 2 and 22, being considered by Dodson Corporation are listed below: Alternative 2 Alternative 22 Supplies costs $ 62,000
Costs associated with two alternatives, code-named 2 and 22, being considered by Dodson Corporation are listed below:
| Alternative 2 | Alternative 22 | |||
| Supplies costs | $ | 62,000 | $ | 46,000 |
| Power costs | $ | 27,000 | $ | 27,000 |
| Inspection costs | $ | 13,000 | $ | 19,000 |
| Assembly costs | $ | 20,000 | $ | 13,000 |
| 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 of Alternative 2 over Alternative 22? (Negative amount should be indicated by a minus sign. Omit the "$" signs in your response.) |
| Differential cost | $ |
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