Two alternatives, code-named X and Y, are under consideration at Donat Corporation. Costs associated with the alternatives are listed below.
-What is the differential cost of Alternative Y over Alternative X, including all of the relevant costs?
A) $140,000
B) $123,000
C) $34,000
D) $106,000

Question

Two alternatives, code-named X and Y, are under consideration at Donat Corporation. Costs associated with the alternatives are listed below. 
-What is the differential cost of Alternative Y over Alternative X, including all of the relevant costs?
A) $140,000 
B) $123,000 
C) $34,000 
D) $106,000

Quizplus · Accepted Answer

Alternative Y has a total cost of $200,000, while Alternative X has a total cost of $166,000. The differential cost is therefore $200,000 - $166,000 = $34,000.

Two Alternatives, Code-Named X and Y, Are Under Consideration at Donat