Saalfrank Corporation is considering two alternatives that are code$-$named M and N$.$ Costs associated with the alternatives are listed.

Alternative M Alternative N

Supplies costs $$50,000$ $$53,000$

Assembly costs $$34,000$ $$34,000$

Power costs $$14,000$ $$21,500$

Inspection costs $$27,000$ $$16,000$

a$.$ Which costs are relevant and which are not relevant in the choice between these two alternatives? $4$ marks

Supplies costs

Assembly costs

power costs

inspection costs

b$.$ what is the differential cost between the two alternatives? $3$ marks

Alternative M Alternative N Differential

Total relevant costs