Precision Products Is Considering Automating Its Manufacturing Process

Precision Products is considering automating its manufacturing process. Currently, the manufacturing process is handled by 5 laborers which operate the machines with annual salaries and wages of $176,000. Annually, direct materials used in production total $73,000, manufacturing overhead associated with production totals $52,000, and marketing costs of $29,000, would remain the same under each option. If Precision automates its factory production, it will eliminate $120,000 of its labor costs, but will also incur $95,000 of machine leasing costs annually. Which of the following costs would be considered relevant in the decision-making framework?

A) Direct materials cost of $73,000
B) Manufacturing overhead costs of $52,000
C) Machine leasing costs of $95,000
D) Marketing costs of $29,000