Two Alternatives,identified X and Y,are Under Consideration at Hayden Corporation

Two alternatives,identified X and Y,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below:
$$\begin{array} { | l | r | r | } \hline & \text { Altemative } \times & \text { Altemative } \mathrm { Y } \\\hline \text { Material costs } & \$ 44,000 & \$ 56,000 \\\hline \text { Processing costs } & 37,000 & 59,000 \\\hline \text { Building costs } & 14,000 & 14,000 \\\hline \text { Equipment rental } & 11,000 & 11,000 \\\hline\end{array}$$
Are the materials costs and processing costs differential in the choice between alternatives X and Y? (Ignore the building costs and equipment rental in this question. )

A) Both materials costs and processing costs are differential
B) Only materials costs are differential
C) Only processing costs are differential
D) Neither materials costs nor processing costs are differential

Correct Answer:

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