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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
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$110,000
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$230,000
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$340,000
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$135,000
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