Charles Corporation produces and sells a single product. Data concerning that product appear below:
Per Unit Percent of Sales
Selling Price $190 100%
Variable Expenses 38 20%
Contribution Margin 152 80%
Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change?

Answers

Answer 1
The answer is no o 872 because

Related Questions

The specific pace and quota of work and tight surveillance indicate that company 1 has a(n) _______ culture.

Answers

Question options:

-traditional

-contingency

-androgynous

-mechanistic

-organic

Answer:

mechanistic

Explanation:

The mechanistic culture in an organization is one that works by strict rules, structure and guidelines. It is different from the organic culture that is more open and flexible. Mechanistic organizations are characterized by hierarchy and bureaucracy, specifying labour divisions for it's employees in a formal, close-knitted and "mechanistic" approach. mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc. Organic organizations can be found among newer organizations such as tech companies.

In a mechanistic culture-based organization, the specific pace, quota of work and tight surveillance are indicator that the company practice such culture.

The mechanistic culture is usually adopted by organization because its works by strict rules, structure and guidelines.

Mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc.

In conclusion, the specific pace and quota of work and tight surveillance indicate that company 1 has a mechanistic culture,

Read more about mechanistic culture

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Suppose you buy 30 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 464.5, and you close out your position. Calculate your dollar profit on this investment

Answers

Full question attached

Answer and Explanation:

If you buy 30 of the September corn futures contract at the closing price of 472.00(refer to the chart in picture attached)

Your total buying value = 30×472.250=14167.5

Since one month from now the corn futures contract is 464.5

Total value of your corn futures now= 30×464.5= 13935

Profit/loss=13935-14167.5= -232.5

Therefore you make a loss of $232.5

William's Co. is considering spending $15,000 at Time 0 to test a new product. Depending on the test results, the firm may decide to spend $58,000 at Time 1 to start production of the product. If the product is introduced and it is successful, it will produce aftertax cash flows of $45,000 a year for Years 2 through 4. The probability of successful test and investment is 62 percent. What is the net present value at Time 0 given a 14 percent discount rate

Answers

Answer:

$10,275.03

Explanation:

Years                                                  0            1             2           3            4  

Cash flow                                     -15000  -58000   45000  45000   45000

Successful chance result (62%)  -9300   -35960    27900   27900   27900  

Considered cash flow                 -15000  -35960    27900  27900    27900

Discount factor (14%)                        1         0.877      0.769    0.675     0.592  

Present value                         -15000  (31,543.86)  21,468.14  18,831.71 16,519.04

Net present value = -$15000 - $31,543.86 + 21,468.14  + 18,831.71 + 16,519.04

Net present value = $10,275.03

Aaron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March. Work in process, March 1 (60% complete as to conversion costs) 150,000 Units started in March 600,000 Units transferred to Finishing Department in March 630,000 Work in process, March 31 (40% complete as to conversion costs) 120,000 Required: a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method. c. The company president has been under considerable pressure to increase income. He tells the controller to change the estimated completion for ending work in process to 60 percent (from 40 percent). c-1. What effect will this change have on the unit costs of units transferred to finished goods in March

Answers

Answer:

Aaron Company

a. Weighted-average

Equivalent units of production        Units      Materials        Conversion

Units transferred to Finishing    630,000  630,000 (100%) 630,000 (100%)

Work in process, March 31         120,000               0  (0%)      48,000 (40%)

Equivalent units                                          630,000             678,000

b. FIFO:

Equivalent units of production      Units      Materials          Conversion

Work in process, March 1          150,000               0                60,000 (40%)

Units started and completed   480,000   480,000 (100%)  480,000 (100%)

Work in process, March 31       120,000               0  (0%)       48,000 (40%)

Equivalent units                                        480,000               588,000

c. The change will reduce the unit costs of units transferred to finished goods in March.

Explanation:

a) Data and Calculations:

Work in process, March 1 (60% complete as to conversion costs) 150,000

Units started in March 600,000

Units transferred to Finishing Department in March 630,000

Work in process, March 31 (40% complete as to conversion costs) 120,000

a. Weighted-average

Equivalent units of production        Units      Materials        Conversion

Units transferred to Finishing    630,000  630,000 (100%) 630,000 (100%)

Work in process, March 31         120,000               0  (0%)      48,000 (40%)

Equivalent units                                          630,000             678,000

b. FIFO:

Equivalent units of production      Units      Materials          Conversion

Work in process, March 1          150,000               0                60,000 (40%)

Units started and completed   480,000   480,000 (100%)  480,000 (100%)

Work in process, March 31       120,000               0  (0%)       48,000 (40%)

Equivalent units                                        480,000               588,000

c. If the estimated completion for ending work in process is changed to 60% from 40%, the equivalent units of production for materials will increase by 120,000.  This increase will also increase the cost of ending work in process and reduce the unit costs transferred to finished goods in March.

In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $30,000 at the end of eight years if he can invest money at:

Answers

Answer:

The correct answer is:

(1) $15,054

(2) $12,990

Explanation:

The required table is not given in the question. Please find below the attachment of the table.

Given:

Future value,

= $30,000

If discounting rate is 9%, the present value will be:

= [tex]Future \ value\times PV \ factor(9 \ percent, 8 \ years)[/tex]

= [tex]30000\times (\frac{1}{1.09} )^8[/tex]

= [tex]30000\times 0.5018[/tex]

= [tex]15,054[/tex] ($)

If discounting rate is 11%, the present value will be:

= [tex]Future \ value\times PV \ factor(11 \ percent, 8 \ years)[/tex]

= [tex]30000\times (\frac{1}{1.11} )^6[/tex]

= [tex]30000\times 0.433[/tex]

= [tex]12,990[/tex] ($)

A 15-year semi-annual coupon bond pays a coupon rate of 7%. The par value of the bond is $1,000. If similar bonds are currently yielding 6%, what is the market value of the bond

Answers

Answer:

Bond Price​= $1,098.01

Explanation:

Giving the following information:

Coupon= (0.07/2)*1,000= $35

YTM= 0.06/2= 0.03

n= 15*2= 30

Face value= $1,000

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 35*{[1 - (1.03^-30)] / 0.03} + (1,000 / (1.03^30)]

Bond Price​= 686.02 + 411.99

Bond Price​= $1,098.01

Find the next year's net income for XYZ Inc. Next year, the sales grow by 25%. The current sales $300 million, and the current profit margin is 10% and you expect it to remain constant.

Answers

Answer: $37.5 million

Explanation:

The next year's net income for XYZ will be calculated as follows:

Current sales = $300 million

Current Profit margin = 10%

Sales Growth rate = 25%

The next year's sales will be:

= Current Year's Sales × (1 + Sales Growth rate)

= $300 million × (1 + 0.25)

= $300 million × 1.25

= $375 million

Next Year's Net Income will then be:

= $375 million × 10%

= $37.5 million

Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.

a. True
b. False

Answers

Answer:

A) True

Explanation:

Ethical learning can be regarded as educational proposal that has the purpose of preparing students as regards their future working life , through rendering of help to acquire skills that will give them enablement to perform their professions with responsibility as well as autonomy.

Business ethics can be regarded as study of needed business policies as well as business practices. Subject needed to learn could involves could be corporate social responsibility,corporate governance and others. It should be noted that Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.

6. निम्नलिखित पंक्तियों का आशय स्पष्ट कीजिए-
क. संगीत सबका है। इसमें जाति-पाँति का भेदभाव मत लाओ।​

Answers

Answer:

yes we should not do any bhedvab towards people becauxe we all are people mademy god if we bully other peoplw we should deserved that .

Employees are quitting at an alarming rate from a classy multi-star hotel. What can the HR team there do to find out the reason for quitting and retain good employees?

Answers

The Human resources team can interact with some of the staffs to know the problem.

Who is an employee?

An employee is someone who is working for an organization or an individual to gets paid at the end of the job either as wages or salary.

In case of any problem, Human resources team can interact with some of the staffs to know the problem.

Learn more on employee below

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#SPJ2

Answer: I believe the answer is C

Explanation:

List at least four factors a project manager should consider when identifying individuals to work on a project. Why is each important

Answers

Answer:

The four elements to consider when identifying individuals to be part of a project team:

ability to communicate effectivelySelf Assuredness, experience, and ability, Organizational agilityEmotional Intelligence

Explanation:

1. Communication is essential because in a project if there is a miscommunication between one person, group, or team and another, that could prove fatal to the goal of the project.

Communication is verbal and non-verbal and (in a project and as with most organizations) must happen across both sides of the spectrum horizontally and vertically.

For example, when expectations are not clarified or there are assumptions about what one person or team said or expects, this could lead to project disruption. When too much is also divulged, a project can go belly-up.

2. Experience and ability are key but they are not enough. Each team member must be confident in what they believe is right. Sometimes, senior members of a team may want a course of action (that is detrimental) to be executed. A junior team member who is not self-assured may think, "it's coming from above, what can one do?" this type of thinking can be very costly.

A self-assured team player would stand for what is right and in the best interest of the team and the project even at the risk of being fired.

3. Organisational Agility

It is impossible to keep a messy itenary and achieve project success.

The ability to know exactly what needs to be done in succession is an invaluable trait of project team members. This prevents waste of time and resources.

4. Emotional Intelligence

Successful team players are also successful leaders. The most cohesive teams are teams that comprise of highly emotionally intelligent people. One of the benefits of emotional intelligence is that it helps the individual to know how to regulate their own behaviors as well as respond to those of others. It is also critical to motivating others to get the job done.

Cheers

Which one of the following affects cash during a period?
a. Recording depreciation expense
b. Declaration of a cash dividend
c. Write-off of an uncollectible account receivable
d. Payment of an accounts payable

Answers

Answer: d. Payment of an accounts payable

Explanation:

The payment of an accounts payable affects cash because it means that cash was used to pay off the payable in question and therefore the cash that the company holds has now reduced.

In the Statement of Cashflows, this is accounted for under the Operating Activities of the business. A decrease in accounts payable is subtracted from the net income to show that cash has reduced.

Assume there is a simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to carpenters, plumbers, and electricians. All else constant, we can predict, with certainty, that in the market for new homes the equilibrium:

Answers

Answer:

Lower price for new houses.

Explanation:

The decrease in the income of people will decrease the demand for houses and the demand curve will shift leftwards. Meanwhile, the decrease in the wages for carpenters, plumbers, etc will decrease the cost of production so the producer will supply more when the cost of production decreases. So supply curve will shift rightwards. Resulting there will be lower prices due to shifts in the leftward demand curve and rightward supply curve.

What would be the return on total assets of a firm if net income is $50,000, total sales are $100,000, and total assets are $175,000

Answers

Answer: 28.6%

Explanation:

The return on the total asset of a firm will be calculated as the net income divided by the total asset and this will be:

=Net income / Total assets

=50,000/175,000

=28.6%

Therefore, return on total asset is 28.6%

An organizational structure is Multiple Choice the arrangement or relationship of positions within an organization. based on the company's shared beliefs and values. usually not seen in government and nonprofit organizations. only applicable to formal organizations. fixed, even if the company grows in size.

Answers

Answer:

the arrangement or relationship of positions within an organization.

Explanation:

The organizational structure corresponds to the arrangement or relationship of positions within an organization, that is, the structure refers to the company's structure by department, position and function, which makes up the organizational hierarchy.

The structure is not fixed, it can be changeable according to the objectives and goals of a company, but to change it it is necessary to share the vision with the stakeholders and analyze the change, since the organizational structure also establishes the culture and the form of relationship within a company.

In the centralized structure, decision-making occurs hierarchically from the highest to the lowest positions, whereas in the decentralized structure, the lower hierarchical levels also participate in the decision-making process, requiring the alignment of the organizational structure with the values ​​and objectives of the company.

To obtain an FHA-insured loan, the buyers will have to pay a MIP of 1.75 points, which will be financed into the loan. What will be the amount of their loan if FHA insures 96.5% of the appraised value and this property appraises for $210,000 (the maximum loan the FHA will insure in their area is $271,000)?

Answers

Answer:

$206,196.38

Explanation:

Calculation to determine what will be the amount of their loan

Loan Amount=($210,000 × 0.965)+[($210,000 × 0.965)×0.0175]

Loan Amount=$202,650+ ($202,650 × 0.0175)

Loan Amount=$202,650 + $3,546.38

Loan Amount= $206,196.38

Therefore What will be the amount of their loan is $206,196.38

You are annoyed by receiving identical marketing messages from an online shopping site you have used. If the company wishes to maintain a good relationship with you, which of the following CRM components needs to be addressed to improve customer satisfaction?

a. Privacy.
b. Mining social media inputs.
c. Cleaning up the data.
d. Customers expect more.

Answers

Answer: c. Cleaning up the data.

Explanation:

Cleaning up data in regards to Customer Relationship Management (CRM) refers to making changes to the messages sent to customers such that they are different or at the very least offer some new information that the customer has not seen before.

It is very important to do this because people do not like receiving the same messages over and over again as this could be considered spamming. This would lead to them unsubscribing from the service.

Consider the following projects. Project CO C1 C2 СЗ C4 C5 A -1,000 +1,000 0 0 0 10 B -2,000 |+1,000 |+1,000 +4,000 +1,000 +1,000 C -3,000 |+1,000 |+1,000 0 +1,000 +1,000 Assume that this firm's beta= 1.5 The expected market return is 12%. The risk free rate is 2.5%. This company can borrow debt at 5.2%. The firm has $5 billion in debt. It has 6 billion shares outstanding at $3 price/shr. The corporate tax rate (Tc) = 21% Question: What is the NPV of project B?a) $3,458
b) -$128
c) -$122
d) $2,158

Answers

Answer:

a) $3,458

Explanation:

The net present value is the present value of future cash flows discounted at the firm's weighted average cost of capital(which is the appropriate discount rate in this case) minus the initial investment outlay

cost of equity=risk-free rate+beta*(expected market return-risk free rate)

cost of equity=2.5%+1.5*(12%-2.5%)

cost of equity=16.75%

after-tax cost of debt=5.2%*(1-21%)

after-tax cost of debt=4.11%

WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)

weight of equity=value of equity/(value of equity+value of debt)

value of equity=6 billion*$3=$18 billion

value of debt=$5 billion

weight of equity=$18 billion/($18 billion+$5 billion)

weight of equity=78.26%

weight of debt=1-78.26%

weight of debt=21.74%

WACC=(78.26%*16.75%)+(21.74%*4.11%)

WACC=14.00%

present value of a future cash flow=future cash flow/(1+WACC)^n

n is the year in which the cash flow is expected, it is 1 for year 1 cash flow, 2 for year 2 cash flow ,and so on

NPV of project B=1000/(1+14%)^1+1000/(1+14%)^2++4000/(1+14%)^3+1000/(1+14%)^4+1000/(1+14%)^5-2000

NPV of project B=$ 3,458.00  

Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the entity multiple of Company X in Year 1?

Answers

Answer:

$5.59

Explanation:

Calculation to determine the value of the entity multiple of Company X in Year 1

Using this formula

Entity multiple=Market value / EBITDA

Let plug in the formula

Entity multiple=$99,450/$17800

Entity multiple=$5.59

Therefore the value of the entity multiple of Company X in Year 1 will be $5.59

Spirit Company's sales budget shows quarterly sales for the next year as follows: Unit sales Quarter 1.......... 10,000 units Quarter 2.......... 8,000 units Quarter 3.......... 12,000 units Quarter 4.......... 14,000 units Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter of the next year would be:

Answers

Answer:

8,800 units

Explanation:

Calculation to determine what Budgeted production for the second quarter of the next year would be:

Second Quarter - Sales 8,000

Less: Beginning Finished Goods

(8,000 x 20%) (1,600)

Add: Desired Ending Finished Goods (12,000 x 20% ) 2,400

Budgeted Production 8,800 units

(8,000-1,600+2,400)

Therefore Budgeted production for the second quarter of the next year would be:8,800 units

If a firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from :___________

a. declining interest rates.
b. rising interest rates.
c. inflation.
d. changes in hedging activities.

Answers

Answer:

b. rising interest rates.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium.

Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.

You just returned from some extensive traveling.You started your trip with $10,000 in your pocket.You spent 1.32 million pesos in Chile where Ps1 = $.001642.You spent Ps36,000 in Uruguay where Ps1 = $.03526.Then on the way home,you spent Ps29,000 in Mexico where $1 = Ps18.8709.How many dollars did you have left by the time you returned to the U.S.?
A) $3,889.07
B) $4,001.84
C) $4,110.27
D) $5,026.44
E) $4,299.03

Answers

Answer:

Option D = 5026.45

Explanation:

Amount at the start of the trip = $10000

Change the 1 million pesos into dollars, Chile = 1320000 x 0.001642 = 2167.44

Uruguay = 36000 x 0.03526 = 1269.36

Mexico = 29000 / 18.8709 = 1536.75

Dollars left at time return to U.S. = $10000 - 2167.44 - 1269.36 - 1536.75

Dollars left at time return to U.S. = 5026.45

Option D = 5026.44

For most goods in an economy, the primary signal that guides the decisions of buyers and sellers is a. quality. b. advertising.

Answers

Answer:

There will be more options than 2 of them. Probably it was a brainly error.

For most goods in an economy, the primary signal that guides the decisions of buyers and sellers is price.

Farrick and Kenley want to form a business in which they invest money in exchange for stock ownership in their organization. What type of business entity do they wish to form

Answers

Answer:

Limited liability company

Explanation:

In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.

Thus the limited liability structure is most suitable for the two.

To select a strategy in a two-person, zero-sum game, Player A follows a ________ procedure and Player B follows a ________ procedure.

Answers

Answer:

None of these is correct

Explanation:

None of these is correct. The correct answer is that; it should be minimax

Larry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas, oil, and maintenance costs are 33 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month.
Required:
a. How much cost would Larry expect to incur during April if he drove the car 1,545 miles? (Round your answer to 2 decimal places.)
b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?
a. Yes
b. No

Answers

Answer and Explanation:

a The computation of the cost is

= $460 + 1,545 miles × 0.33

= $460 + $509.85

= $969.85

b. It should not be considered as the meaningful as the fixed cost would remains the fixed i.e. $460 also the 0.33 per mile should be considered as the variable cost that change with the change in the no of miles covered

Therefore the same should be considered

Oliver's long-term care policy covers only services in a nursing facility and pays nothing for services provided at home or in the community. What kind of LTC policy does Oliver own?

Answers

Question options:

a. facility-challenged

b. substandard

c. tier 1

d. noncomprehensive

Answer:

d. noncomprehensive

Explanation:

Oliver has a noncomprehensive long term care(LTC). A non comprehensive long term care is policy that restricts services to the ones provided at a nursing facility, and so Oliver pays for the benefits of only the services of a nursing facility . It is different from a comprehensive long term care where services cover and can be provided at an adult day care, home, assisted living facilities, or at nursing facilities.

Oliver's policy which does not cover nursing facilities provided at home or in the community is known as a Non-comprehensive health insurance policy. So, the correct option is D.

A non-comprehensive policy is a type of policy that covers only expenses related to the health of the customer that are provided in the hospital in-house premises only.

It is to be noted that there are no nursing facility expenses reimbursed or paid to the policy holder in case of health issues faced, if any. There are several other types of policies which reimburse such expenses.

In a non-comprehensive policy, the policy holder is entitled to receive health benefits of only core hospitalization and any other expenses like bedding, medications, out-house nursing facilities, etc.

The premium to be paid on the non-comprehensive policy is less compared to a comprehensive policy as the benefits to be availed are also less and so the drill.

Hence, the correct option is D that the non-comprehensive policy does not cover nursing facilities taken in-house or at the community.

To know more about health insurance policies, click the link below

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The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ________ economy.

Answers

Answer:

The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ____capitalist____ economy.

Explanation:

For example, the US economy provides a good example of a capitalist economy.  A capitalist or market economy is also known as capitalism.  It is an economic system whereby private individuals or businesses own capital goods or means of production. Therefore, the production of goods and services is based on the market forces of supply and demand.  Since individuals and firms fix prices of and decide what goods and services to produce, rather than through central planning by the government, it is also known as a market economy.  The opposite is called a command economy, characterized by central government planning.

___________ are actually giant specialty stores. They feature stores the size of airplane hangars that carry a deep assortment of a particular line with a knowledgeable staff. These stores are prevalent in a wide range of categories, including books, baby gear, toys, electronics, home improvement products, and even pet supplies.

Answers

Answer: Category killers

Explanation:

A specialty store as the name implies, is one that specializes in a certain category of goods. They however provide a range of products and brands within that category.

When a specialty store becomes really big and provides a very deep assortment of a particular line of goods along with very knowledgeable staff to help, they become known as Category killers because they would be providing a whole lot of brands and products under the category they operate in.

An example would be BestBuy or Home Depot.

Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs$79,000 $79,000 Power costs$36,600 $35,600 Inspection costs$32,000 $35,600 Assembly costs$48,000 $48,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives

Answers

Answer:

Albiston Corporation

Relevant  and Irrelevant Costs:

Relevant Costs:

                      Alternative Q   Alternative R

Power costs        $36,600           $35,600

Inspection costs $32,000           $35,600

Irrelevant Costs:

                      Alternative Q   Alternative R

Supplies costs     $79,000           $79,000

Assembly costs  $48,000           $48,000

Explanation:

a) Data and Comparisons:

                      Alternative Q   Alternative R

Supplies costs     $79,000           $79,000

Power costs        $36,600           $35,600

Inspection costs $32,000           $35,600

Assembly costs  $48,000           $48,000

b) Relevant costs make a difference in the choice between alternative Q or R.  The costs that are the same in amount are not relevant.  Supplies costs and Assembly costs are two irrelevant costs, while Power costs and Inspection costs are relevant because they are not the same under the two alternatives.  They make a difference in the choice of each alternative.

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