. Karim Corporation is considering two alternatives that are code-named A and B. Costs associated...
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. Karim Corporation is considering two alternatives that are code-named A and B. Costs associated with the alternatives are listed below:
|
| Alternative A | Alternative B |
| Supplies costs | SAR 33 000 | SAR 33 000 |
| Assembly costs | SAR 48 000 | SAR 51 000 |
| Power costs | SAR 32 000 | SAR 22 000 |
| Inspection costs | SAR 11 000 | SAR 27 000 |
Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? [0.5 Mark] b. What is the differential cost between the two alternatives? [0.5 Mark]
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