=+4 Assume the same data with respect to the government contract as in requirement 3 except that the two alternatives to be compared are:

338 Chapter 8: Decision making and relevant information M08_HORN3377_02_LT_C08.indd 338 2/09/13 3:42 PM Sales each month to: Alternative A Alternative B Regular customers 20 000 units 15 000 units Government 0 units 5 000 units Operating profit under alternative B relative to that under alternative A is:

(a) $4000 less,

(b) $3000 greater,

(c) $6500 less,

(d) $500 greater or

(e) none of these.