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QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below:

QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below:

Alternative A Alternative B
Projected revenue $ 230,000 $ 340,000
Unit-level costs 44,000 55,000
Batch-level costs 31,500 43,000
Product-level costs 34,000 36,000
Facility-level costs 29,000 31,500

What is the differential revenue for this decision?

Multiple Choice

  • $110,000

  • $230,000

  • $340,000

  • $135,000

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