In making the decision to buy the model 230 machine rather than the model 380 machine, the differential cost was:
A)$71,000
B)$59,000
C)$12,000
D)$39,000

Question

Quizplus · Accepted Answer

The differential cost is the difference in cost between the two machines. The model 230 machine costs $71,000 and the model 380 machine costs $130,000. Therefore, the differential cost is $71,000 - $130,000 = -$59,000.

In Making the Decision to Buy the Model 230 Machine