Two alternatives, code-named X and Y, are under consideration at Afalava Corporation. Costs associated with the alternatives are listed below. Are the materials costs and processing costs relevant in the choice between alternatives X and Y? (Ignore the equipment rental and occupancy costs in this question.)

Only materials costs are relevant

Only processing costs are relevant

What is the differential cost of Alternative Y over Alternative X, including all of the relevant costs?

		$103,000
		$39,000
		$142,000
		$122,500

Both materials costs and processing costs are relevant

Neither materials costs nor processing costs are relevant

Two alternatives, code-named X and Y, are under consideration at Afalava Corporation. Costs associated with the alternatives are listed below. Are the materials costs and processing costs relevant in the choice between alternatives X and Y? (Ignore the equipment rental and occupancy costs in this question.) Only materials costs are relevant Only processing costs are relevant What is the differential cost of Alternative Y over Alternative X, including all of the relevant costs? $103,000 $39,000 $142,000 $122,500 Both materials costs and processing costs are relevant